L.A. CARBOB, Jet Fuel Basis Down on Refinery Issues


   
Kristina Davis
DTN Refined Fuels Market Reporter

   MIAMI, FL (DTN) -- Los Angeles CARBOB and jet fuel differentials weakened on 
Thursday (10/17), with San Francisco CARBOB also following that downward trend, 
as refinery disruptions continue following multiple flaring incidents and a 
recent fire at Chevron's El Segundo refinery.
Los Angeles CARBOB traded at a 28cts premium to November NYMEX RBOB futures, 
down 10cts from the last level traded at premium of 38cts on Thursday (10/16).

   San Francisco CARBOB also weakened, trading at the end of Friday's session 
at plus 48cts and leaving off at 42cts above November RBOB futures, 8cts lower 
from its last reported level of plus 48cts.

   Jet fuel in Los Angeles also softened to a basis of plus 27cts, 8cts weaker 
from its last assessed level of plus 35cts on Thursday (10/16). 

   Traders cited easing to prompt demand and ongoing refinery disruptions that 
continue to weigh on supply expectations in West Coast markets.
Chevron's 269,000 bpd El Segundo refinery, has remained under scrutiny 
following an October 2 explosion that impacted its Isomax unit, which produces 
jet fuel and other middle distillates. Since the explosion, the South Coast Air 
Quality Management District has logged multiple emergency flaring events at the 
site.
The most recent incident, reported October 15, was categorized as emergency 
flaring with no estimated stop time listed as of Wednesday afternoon. Chevron 
previously reported another flare on October 12, marking the fourth since 
August.

   MIAMI, FL (DTN) -- Los Angeles CARBOB and jet fuel differentials weakened on 
Thursday (10/17), with San Francisco CARBOB also following that downward trend, 
as refinery disruptions continue following multiple flaring incidents and a 
recent fire at Chevron's El Segundo refinery.

   Los Angeles CARBOB traded at a 28cts premium to November NYMEX RBOB futures, 
down by 10cts from the last level traded at premium of 38cts on Thursday 
(10/16).

   San Francisco CARBOB also weakened, trading at the end of Friday's session 
at plus 48cts and leaving off at 42cts above November RBOB futures, lower by 
8cts from its last reported level of plus 48cts.

   Jet fuel in Los Angeles also softened to a basis of plus 27cts, weaker by 
8cts from its last assessed level of plus 35cts on Thursday (10/16).

   Traders cited easing to prompt demand and ongoing refinery disruptions that 
continue to weigh on supply expectations in West Coast markets.

   Chevron's 269,000 bpd El Segundo refinery, has remained under scrutiny 
following an October 2 explosion that impacted its Isomax unit, which produces 
jet fuel and other middle distillates. Since the explosion, the South Coast Air 
Quality Management District has logged multiple emergency flaring events at the 
site.

   The most recent incident, reported October 15, was categorized as emergency 
flaring with no estimated stop time listed as of Wednesday afternoon. Chevron 
previously reported another flare on October 12, marking the fourth since 
August.

    




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