San Francisco Gasoline Jumps as Shell Reports Upset Amid Tankers
Spot gasoline in San Francisco gained against futures for a second day after Royal Dutch Shell Plc (RDSA)’s Martinez refinery reported a unit upset and as at least two tankers were headed to the region to load fuel for export.
Shell’s 165,000-barrel-a-day Martinez plant in Northern California reported a unit failure that caused the refinery to flare gases late yesterday, a state regulatory filing shows. The plant returned to normal operations by today, Destin Singleton, a Shell spokeswoman in Houston, said by e-mail.
The tanker Alpine Eternity is scheduled to load fuel off the West Coast on July 6 for Central and South America, ship-fixture data compiled by Bloomberg show. The Isola Corallo was chartered by Valero Energy Corp. (VLO) to load clean products off the West Coast July 7 for delivery to Chile. IHS Inc. (IHS) data show the vessel is bound for Martinez.
California-blend gasoline, or Carbob, in San Francisco jumped 4.5 cents to a premium of 7.5 cents a gallon against futures traded on the New York Mercantile Exchange at 1:27 p.m., according to data compiled by Bloomberg. Prompt-delivery rose a second day, up 5.52 cents to $2.8133 a gallon.
Carbob in Los Angeles slipped 1.5 cents to a premium of 8.5 cents a gallon.
The discount for Carbob in San Francisco versus Los Angeles narrowed 6 cents to 1 cent a gallon, the smallest differential since it switched from a premium three weeks ago.
Retail gasoline in California dropped 1.5 cents to $4.026 a gallon, Heathrow, Florida-based AAA, the nation’s largest motoring organization, said today on its website. Prices are up from $3.796 a gallon a year ago.
The premium for spot, conventional gasoline in Portland, Oregon, was unchanged at 11 cents a gallon over futures. Portland gasoline gained 1.5 cents against Los Angeles Carbob to a premium of 2.5 cents a gallon.
The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles narrowed for the seventh day, losing 40 cents to $13.49 a barrel at 3:16 p.m. New York time, the lowest level since March.
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