Spot gasoline in San Francisco advanced to a seven-week high against futures after Royal Dutch Shell Plc reported an upset at its Northern California refinery and tankers were seen headed to Bay Area refineries.
The fuel strengthened after 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.
The oil products tanker Overseas Kythnos was expected to arrive at Chevron Corp.’s Richmond refinery on Sept. 5, and the NCC REEM was due at Phillips 66’s Rodeo refinery on the same day, IHS Inc. data show.
California-blend gasoline, or Carbob, in San Francisco widened its premium to futures traded on the New York Mercantile Exchange by 1.5 cents to 6.5 cents a gallon at 4:22 p.m., the highest level since July 11, data compiled by Bloomberg show. Prompt delivery fell 1.05 cents to $2.9296 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 $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 $1.09 to $11.39 a barrel at 4:11 p.m. New York time.