San Francisco Gasoline Advances After Shell Said to Shut Units
Spot gasoline in San Francisco gained against futures for the first time in three days after Royal Dutch Shell Plc (RDSA)’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 April 5 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 2 cents against futures traded on the New York Mercantile Exchange to a premium of 8 cents a gallon at 1:22 p.m. New York time, according to data compiled by Bloomberg. Prompt delivery of the fuel jumped 4.25 cents to $3.0118 a gallon, a week-high.
Two workers draining hot oil April 5 from a shut unit 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 was unchanged at a premium of 3 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 dropped 1 cent against ultra-low-sulfur diesel futures on the Nymex to a premium of 6.5 cents a gallon. Diesel in Los Angeles slipped 0.25 cent to 5.75 cents a gallon above futures.
In Portland, Oregon, low-sulfur diesel climbed 0.25 cent to a 14.75-cent-a-gallon premium versus ULSD futures. Gasoline there gained 3 cents against gasoline futures to a premium of 3 cents a gallon, the highest since Feb. 27.
The 3-2-1 crack spread of Alaska North Slope crude, Carbob in Los Angeles and CARB diesel in Los Angeles dropped 32 cents to $17.56 a barrel at 2:01 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.
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