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Phillips 66 Issue Drives LA Cash Gasoline Basis Up on Week
3/22 4:54 PM
Phillips 66 Issue Drives LA Cash Gasoline Basis Up on Week OAKHURST, N.J. (DTN) --- Cash gasoline basis in Los Angeles eased Friday in dull trade but rallied nearly a dime versus the week prior, the bulk of the run-up the result of the Phillips 66 Carson refinery crude unit fire on March 15. "Due to a recent fire that occurred on the crude processing unit at the Carson facility (which is part of the Phillips 66 Los Angeles Refinery), the unit remains shut down while we make repairs and investigate the cause," a company statement read. "The rest of the Carson facility and the Wilmington facility continue to operate. We do not want to speculate on how long the crude unit will be down or what impact this would have on the market; however, we are working to ensure that we will meet our contractual supply obligations." Phillips 66's Los Angeles Refinery comprises two linked facilities in Carson and Wilmington. The Carson plant processes crude oil and Wilmington upgrades the intermediate products to finished products. The company website lists the total capacity of the complex at 165,000 bpd, with crude capacity at 135,000 bpd, gasoline capacity at 85,000 bpd and distillate capacity at 65,000 bpd. On Thursday (3/21), sources said Chevron's El Segundo refinery in the basin experienced a brief issue with the hydrocracking unit while flaring at PBF's Torrance refinery that's slated to end this weekend could mean the completion of planned work at the plant, sources said. On the supply side, California Energy Commission data for the week-ended March 15 showed CARB reformulated gasoline supply at 6.265 million bbl, down more than 22% from the same week a year ago. CEC data shows CARB RFG and blending components stocks in southern California dropped last week, remaining below the five-year high-low band for a fourth straight week. In physical trade, March CARBOB in the basin was offered at an 18.0cts futures premium with bids pegged at 16.0cts premiums. This compares with a 23.0cts premium the prior session. A week ago, the fuel was indexed at a 7.75cts futures premium. April CARBOB, which moves to the forefront of business in the basin early next week, traded from a high of 23.0cts over the May RBOB contract to a low of 21.0cts over the contract. This compares with trades at 24.0cts and 25.0cts premiums a day ago. Last week, the fuel was indexed 12.5cts over the May RBOB contract. On the diesel side of trade, April CARB ULSD and ULSD for export out-of-state were talked at 6.0cts premiums to the May ULSD contract. San Francisco Bay April CARBOB was indexed at a 17.0cts premium to the May contract while Pacific Northwest prompt suboctane was talked 17.0cts over the April RBOB contract. Dawn Gallagher, 1.732.531.4451, dawn.gallagher@dtn.com, www.dtn.com. (c) 2019 DTN. All rights reserved.