Northwest Gasoline Tumbles on Tankers, as Shell Restores Output
Spot gasoline in the U.S. Pacific Northwest dropped by the most against futures since February as tankers carried oil products to the region and a Royal Dutch Shell Plc (RDSA) refinery recovered from a power failure.
The oil-products tanker NCC Reem, near Seattle, was bound for BP Plc (BP/)’s Cherry Point refinery in Washington state today, according to IHS Inc. (IHS) data. The vessel was chartered by Phillips 66 (PSX) to deliver clean products to the West Coast from South Korea, ship-fixture information compiled by Bloomberg show. The Voge Dignity, off the California coast, is also headed for Vancouver.
Conventional, 84-octane gasoline in Portland, Oregon, a benchmark for the Pacific Northwest, weakened by 11.5 cents against futures traded on the New York Mercantile Exchange to a premium of 17.5 cents a gallon, data compiled by Bloomberg show. That’s the lowest level for the fuel in three weeks and the biggest single-day decline since Feb. 28.
Shell’s 147,500-barrel-a-day Anacortes refinery in Washington has returned to normal operations after a power failure May 13 that resulted in the shutdown of multiple units, Kim Windon, a company spokeswoman in Houston, said by e-mail on May 17.
California-blend gasoline, or Carbob, in San Francisco strengthened 2.5 cents against Nymex futures to a premium of 15.5 cents a gallon. The same fuel in Los Angeles climbed 1 cent to 10 cents above futures.
California-grade, or CARB, diesel in San Francisco dropped 4.5 cents against ULSD futures to a discount of 1 cent a gallon. CARB diesel in Los Angeles also weakened 0.38 cent to 5.38 cents a gallon below 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 first time in three days, losing $1.13 a barrel to $16.66.
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