San Francisco Gasoline Gains to Two-Month High on Shell RepairsLynn Doan
Spot gasoline in San Francisco rose to the highest level against futures in two months after Royal Dutch Shell Plc’s Martinez refinery in Northern California was said to shut units for maintenance.
The 165,000-barrel-a-day plant northeast of San Francisco halted equipment in its light-oil processing section last week for planned repairs that are expected to last through the month, a person familiar with operations there said yesterday. Two workers were burned by hot oil while flushing one of the vessels involved, said the person, who asked not to be identified because the information isn’t public.
California-blend gasoline, or Carbob, in San Francisco rose 4.5 cents against futures traded on the New York Mercantile Exchange to a premium of 10.5 cents a gallon at 4:10 p.m. New York time, the highest level since Feb. 6, according to data compiled by Bloomberg. Prompt delivery of the fuel jumped 7.81 cents to $3.0474 a gallon, a one-week high.
Two workers draining hot oil April 5 from a shut unit at Martinez were closing a valve when a “surge” of the substance hit them on the forearm, neck and “possibly lower face,” Shell said in a notice to the Contra Costa County hazardous materials division.
Carbob in Los Angeles rose 2.5 cents to a premium of 5.5 cents a gallon against futures.
The premium for Carbob in San Francisco versus the fuel in Los Angeles widened 2 cents to 5 cents a gallon, the highest level in more than a week.
California-blend diesel in San Francisco slipped 0.5 cent against ultra-low-sulfur diesel futures on the Nymex to a premium of 7 cents a gallon. Diesel in Los Angeles dropped 1 cent to 5 cents a gallon above futures.
In Portland, Oregon, low-sulfur diesel fell 0.5 cent to a 14-cent-a-gallon premium versus ULSD futures. Gasoline there gained 3.5 cents against gasoline futures to a premium of 3.5 cents a gallon, the highest level since Feb. 27.
The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles gained for a second day, adding 75 cents to $18.64 a barrel at 4:12 p.m. New York time. The spread, a rough indicator of refinery profit margins, hit a one-year low of $3.86 a barrel in December.