San Francisco Gasoline Gains to 7-Week High as Shell Has Upset

Spot gasoline in San Francisco advanced to a seven-week high against futures after Royal Dutch Shell Plc (RDSA) reported an upset that caused its Northern California refinery to flare gases.

The 165,000-barrel-a-day Martinez plant northeast of San Francisco isolated a compressor to repair a leak yesterday, a notice to county regulators showed. The refinery had an “operational issue” that led to flaring today, Destin Singleton, a Shell spokeswoman in Houston, said by e-mail.

California-blend gasoline, or Carbob, in San Francisco widened its premium to futures traded on the New York Mercantile Exchange by 0.5 cent to 5.5 cents a gallon at 2:02 p.m., the highest level since July 11, data compiled by Bloomberg show. Prompt-delivery climbed 0.31 cent to $2.9432 a gallon.

Carbob in Los Angeles strengthened 1.25 cents to a premium of 4.75 cents a gallon.

Retail gasoline in California climbed 0.1 cent to average $3.827 a gallon, Heathrow, Florida-based AAA, the nation’s largest motoring organization, said on its website.

The discount for conventional gasoline in Portland, Oregon, a benchmark for the U.S. Pacific Northwest, was unchanged at 1.5 cents a gallon against Nymex futures.

The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and California-grade diesel in Los Angeles, narrowed for the first time in three days, dropping 43 cents to $12.05 a barrel at 3 p.m. New York time.

To contact the reporter on this story: Lynn Doan in San Francisco at ldoan6@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

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