Los Angeles Gasoline Wholesale Hits New High Due to Refinery Outages


HOUSTON, Sept 28 (Reuters) – October wholesale gasoline sold on Wednesday in the Los Angeles market at $2.50 a gallon across NYMEX RBOB gasoline futures, a high caught in the refined markets Product has not been seen on the west coast due to refinery outages, traders said.

The wholesale price of CARBOB gasoline, which is the California Air Resources Board-mandated gasoline blend for blending with ethanol, has risen as planned over the past two weeks and unplanned refinery outages have tightened supply.

The 139,000 barrels per day (bpd) Phillips 66 (PSX.N) refinery near Los Angeles in Wilmington, California, began an overhaul of a reformer on September 16 following a fire.

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Valero Energy Corp. began scheduled work on units at its 145,000 bpd San Francisco Bay Area refinery in Benicia, California on September 20.

On September 11, Chevron Corp (CVX.N) reported an equipment failure at its 245,271 bpd San Francisco-area refinery in Richmond, California.

Marathon Petroleum (MPC.N) has shut down a planned flare facility at its 383,000 bpd Carson, California refinery in the Los Angeles area between September 3rd and 9th.

As of Wednesday, October, CARBOB gasoline in the San Francisco market was priced at $2.45 a gallon above NYMEX RBOB in November.

The Los Angeles gasoline market, due for delivery later in October, was lower, suggesting some refinery production is returning within weeks, dealers said.

CARBOB Gasoline for Delivery in Second Half of October Gasoline traded above the NYMEX RBOB in November at $1.50.

November CARBOB sold in Los Angeles at 50 cents and 57 cents a gallon versus NYMEX RBOB in December.

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Reporting by Erwin Seba; Editing by Christopher Cushing

Our standards: The Thomson Reuters Trust Principles.


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