San Francisco Gasoline Jumps as Shell Reports Upset Amid TankersLynn Doan
Spot gasoline in San Francisco gained against futures for a second day after Royal Dutch Shell Plc’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. to load clean products off the West Coast July 7 for delivery to Chile. IHS Inc. data show the vessel is bound for Martinez.
California-blend gasoline, or Carbob, in San Francisco jumped 4 cents to a premium of 7 cents a gallon against futures traded on the New York Mercantile Exchange at 4:06 p.m., according to data compiled by Bloomberg. Prompt-delivery rose a second day, up 2.75 cents to $2.7856 a gallon.
Carbob in Los Angeles slipped 1 cent to a premium of 9 cents a gallon.
The discount for Carbob in San Francisco versus Los Angeles narrowed 5 cents to 2 cents 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, gained 1.75 cents to 12.75 cents a gallon against futures. Portland gasoline strengthened 2.75 cents against Los Angeles Carbob to a premium of 3.75 cents a gallon, the highest in four days.
Low-sulfur diesel in Portland jumped 4.5 cents against ultra-low-sulfur diesel futures traded on the Nymex to a premium of 4.5 cents a gallon, the highest level in a month.
California-blend, or CARB, diesel in Los Angeles slipped
0.75 cent versus ULSD futures to a premium of 0.5 cent a gallon. The fuel in San Francisco advanced 1 cent to 2.5 cents a gallon above futures.
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 65 cents to $13.24 a barrel at 4:12 p.m. New York time, the lowest level since January.
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