San Francisco Gasoline Advances on Fuel Tankers, Tight Supplies

Spot gasoline in San Francisco strengthened to a six-week high against futures as tankers were seen exporting fuel from Northern California refineries amid declining state supplies.

The oil-products tanker Marlin Topaz left Phillips 66’s Rodeo refinery, northeast of San Francisco, last week and was headed for Ecuador, according to vessel data compiled by IHS Inc. The Valle Bianca left the San Francisco area yesterday and was bound for Rosario, Mexico. The NCC REEM is expected to arrive at the Rodeo refinery Sept. 5, and the Overseas Kythnos left Chevron Corp.’s Richmond plant yesterday, the data show.

California-blend gasoline stockpiles tumbled to 5.53 million barrels last week, a five-week low, the state Energy Commission said Aug. 28. Gasoline supplies on the West Coast fell by the most since April, according to the Energy Information Administration.

Carbob in San Francisco surged 12.5 cents against futures traded on the New York Mercantile Exchange to a premium of 5 cents a gallon at 1:55 p.m. New York time, the highest level since July 15, data compiled by Bloomberg show. Prompt-delivery of the fuel gained 7.69 cents to $2.9325 a gallon.

The same fuel in Los Angeles strengthened 7.5 cents versus futures to a premium of 3.5 cents a gallon. Los Angeles Carbob retreated 5 cents versus the fuel in San Francisco to a discount of 1.5 cents a gallon.

Retail gasoline in California rose 0.5 cent to average $3.812 a gallon, Heathrow, Florida-based AAA, the nation’s largest motoring organization, said on its website.

Portland Gasoline

Conventional gasoline in Portland, Oregon, a benchmark for the U.S. Pacific Northwest, shrank its discount to Nymex futures by 5 cents to 11 cents a gallon.

The products tanker Kriti Ruby was expected to arrive in Anacortes, Washington, tomorrow, according to IHS data. Ultra-low-sulfur diesel at the terminal rack in Vancouver, British Columbia, was selling for 94 Canadian cents (89 U.S. cents) a liter yesterday, the highest since May 2012.

The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and California-grade diesel in Los Angeles, widened $1.60 to $12.41 a barrel at 2:05 p.m. New York time. The spread, a rough indicator of refining profitability, is at the highest level in two weeks.

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