Unforeseen "emergency flaring" occurred at PBF's Torrance refinery in California on Monday morning, as stated in a regulatory filing with the South Coast Air Quality Management District. The cause of the flare event is currently unknown and it is unclear whether it is linked to the storm Hilary, which has brought flash-flood warnings and strong winds to the West Coast.
Meanwhile, Marathon Petroleum had previously scheduled flaring activity at its Los Angeles refinery in Carson from Sunday through August 30. This was also reported in a company filing with the South Coast Air Quality Management District.
Market dynamics revealed that the implied prices of refined products in Los Angeles were impacted by these occurrences. At 9:18 a.m. ET, L.A. CARBOB prices witnessed a decrease of 1.43 cents, settling at $3.2689/gal. Trade levels were reported as 46 cents above NYMEX September RBOB futures with no visible bids or offers yet.
On the other hand, Los Angeles CARB diesel prices experienced an increase of 0.24 cents, reaching $3.3303/gal. Futures premiums were indicated at 20 cents above NYMEX October ULSD. No bids or offers have been observed at this time.