The pending restart of ExxonMobil’s 155,000 b/d refinery in Torrance, California, has stoked volatility in the Los Angeles gasoline market. ExxonMobil is trying to restart Torrance after a February 2015 explosion crippled production at the facility, which can supply up to 20pc of the region's gasoline demand. California regulators approved the restart of the fluid catalytic cracking (FCC) unit at Torrance on 2 April. In the next trading session, prompt cash differentials shed roughly 50pc of their value, moving to +8.5￠/USG over the May Nymex from +16￠/USG, the steepest drop in two months. Differentials have not recovered much since then.
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