Gasoline in San Francisco gained as maintenance at two Northern California refineries threatened to reduce supplies in the region.
Gasoline’s discount versus futures narrowed after Tesoro Corp. (TSO)’s Golden Eagle notified state officials of work and the 165,000-barrel-a-day Royal Dutch Shell Plc (RDSA) Martinez refinery began repairs planned to last 45 to 50 days on the fluid catalytic cracker, which processes vacuum gasoil into lighter products such as gasoline.
California-blend gasoline, or Carbob, in San Francisco strengthened by 13 cents against gasoline futures traded on the New York Mercantile Exchange to a discount of 10 cents a gallon, according to data compiled by Bloomberg at 4:17 p.m. New York time.
The same fuel in Los Angeles strengthened 6 cents to a discount of 2 cents a gallon.
Retail gasoline in California fell 0.6 cent to $3.617 a gallon, according to Heathrow, Florida-based AAA.
The 3-2-1 crack spread, assuming two barrels of Carbob gasoline and one barrel of California-grade diesel in Los Angeles is refined out of three barrels of Alaska North Slope crude, narrowed $2.90 to $11.05 a barrel at 4:44 p.m. New York time. The spread, a rough indicator of refining profitability on the U.S. West Coast, is the widest since Jan. 7.
Conventional, 87-octane gasoline in Portland, Oregon, a benchmark for the U.S. Pacific Northwest, gained 2.5 cents to a discount of 14 cents a gallon.
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