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US WCoast Products - Gasoline gains after refinery malfunction

Friday, 20 Dec 2013 | 8:40 PM ET

HOUSTON, Dec 20 (Reuters) - California gasoline's differential climbed in the Los Angeles wholesale market on Friday after a refinery in the area reported a malfunction, traders said.

December-delivery CARBOB gasoline in Los Angeles rose 3.75 cents a gallon to 4 cents a gallon below the price for the January RBOB gasoline contract on the New York Mercantile Exchange.

Phillips 66's 139,000 barrel per day (bpd) Los Angeles refinery reported a malfunction at its Wilmington, California, plant, according to notices filed with California pollution regulators.

The company declined to discuss operations at the refinery.

In the San Francisco Bay market, January-delivery CARBOB gasoline retreated 3.5 cents a gallon to 8.5 cents a gallon under February NYMEX RBOB.

CARBOB gasoline is mandated by the California Air Resources Board (CARB) for use in that state and meets more stringent anti-pollution standards than the gasoline required by the U.S. Environmental Protection Agency, which is used in most of the country. CARBOB is made to blend with ethanol.

EPA gasoline in the Portland, Oregon market strengthened 2 cents a gallon to 13.5 cents a gallon under January NYMEX RBOB.

L.A. CARB diesel for delivery in January was steady at 2.75 cents a gallon under February NYMEX heating oil.

Bay market December CARB diesel was 1 cent a gallon stronger at 7 cents a gallon under January NYMEX heating oil.

CARB also requires a state-specific ultra-low-sulfur diesel with a more stringent formula than EPA diesel.

EPA diesel in Portland dipped 0.5 cent a gallon to 6.5 cents a gallon under January NYMEX heating oil.

(Reporting by Erwin Seba; Editing by Ken Wills)