Bloomberg News

Jet Rises as Morgan Stanley Buys; Naphtha Falls: Oil Products

September 29, 2011

Sept. 29 (Bloomberg) -- Jet fuel’s premium to October gasoil rose as Morgan Stanley bought barges. Diesel gained. Distillate spreads also increased after Royal Dutch Shell Plc shut some processing units, including a hydrocracker, after a fire at its refinery in Singapore that was put out after two days.

Gasoil traded on London’s ICE Futures Europe exchange fell. Naphtha and gasoline prices declined.

Light Products

Trafigura Beheer BV bought a cargo of naphtha from Glencore International Plc at $902 a metric ton, according to a survey of traders and brokers monitoring the Platts pricing window, which ends at 4:30 p.m. London time. That compares with a trade yesterday at $917 a ton.

Naphtha’s discount to Brent increased to $2.99 a barrel from $2.90 yesterday, according to PVM Oil Associates Ltd., a crude and refined products broker in London.

Gasoline for immediate loading in Amsterdam-Rotterdam- Antwerp traded from $928 to $933 a ton, according to a survey of traders and brokers monitoring the Argus Bulletin Board. That compares with trades yesterday at $937 and $940 a ton.

Gunvor Group Ltd. bought 7,000 tons of the 10,000 tons that changed hands. Royal Dutch Shell Plc was the main seller. The trades, typically of 1,000 tons or 2,000 tons, are for Eurobob grade, to which ethanol is added to make finished motor fuel.

Greenergy International Ltd. bought a cargo of gasoline from Morgan Stanley at $942 a ton, priced for delivery to the U.K. from Oct. 9 to Oct. 13, according to the survey of Platts.

Gasoline’s premium to Brent increased to $6.47 a barrel from $6.16 yesterday, according to PVM. That’s the biggest spread since Aug. 31.

Middle Distillates

Morgan Stanley purchased jet fuel barges at premiums of $80 and $83 to October gasoil, according to the survey of Platts. That compares with a trade on Sept. 27 at a $69 premium. A cargo also changed hands today at $82 a ton more than the October gasoil contract.

Diesel barges rose $3, trading at a premium of $36.50 a ton to October gasoil, the survey showed.

Cargill SA purchased a gasoil cargo, partly priced at a $10 a ton premium to October futures gasoil for delivery to Barcelona, the survey of Platts showed. That’s in line with a deal yesterday.

Gasoil barges traded at discounts of $3 and $3.50 a ton to the futures contract, the survey showed, in line with yesterday’s trades.

Gasoil for October dropped 0.7 percent to $900.75 a ton as of 5:36 p.m. London time on the ICE exchange. The November contract fell 0.8 percent to $896.50 a ton. The low-sulfur grade closed today at $906.75 a ton for delivery in January, without trading, according to ICE data on Bloomberg.

Gasoil’s crack, a measure of refining profitability, widened to $15.47 a barrel from $15.25 yesterday, according to ICE data. Front-month Brent rose 1.1 percent to $104.93 a barrel on the ICE exchange.


Low-sulfur fuel oil fell $3 to $626 a ton, according to the survey of Platts. High-sulfur grade traded at $600.25 to $608 a ton, the survey showed. That compares with deals yesterday at $609 to $613.


Shell shut processing units at its Pulau Bukom refinery in Singapore following a fire that raged for two days. The plant is the world’s biggest, able to process 500,000 barrels of crude a day, according to data compiled by Bloomberg.

--Editors: John Buckley, Alessandro Vitelli

To contact the reporter on this story: Nidaa Bakhsh in London at

To contact the editor responsible for this story: Stephen Voss at

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