Bloomberg News

Eni Buys Second Diesel Cargo; KLM Sells Jet Fuel: Oil Products

December 15, 2011

Dec. 14 (Bloomberg) -- Eni SpA purchased a diesel cargo, its third for delivery to Aliaga, Turkey, this month. Statoil ASA and Air France-KLM sold jet fuel on the barge market.

Gasoil dropped on London’s ICE Futures Europe exchange. The heating fuel’s premium to Brent crude shrank.

Light Products

Gasoline barges for immediate loading in Amsterdam- Rotterdam-Antwerp traded at $902 to $922 a metric ton, according to a Bloomberg survey of brokers and traders monitoring the Argus Bulletin Board and Platts pricing window. That compares with yesterday’s deals from $907 to $931.

Royal Dutch Shell Plc and Trafigura Beheer BV were the biggest buyers. BP Plc and Gunvor Group Ltd. were among sellers for the Eurobob grade to which ethanol is added to make finished motor fuel.

Gasoline’s premium to Brent expanded to $1.89 a barrel from $1.74 yesterday, according to PVM Oil Associates Ltd., a crude and products broker in London. That’s the most since Nov. 2.

Gasoline consumption in France dropped 8 percent last month compared with a year earlier, the Union Francaise des Industries Petrolieres, known as UFIP, said in a statement.

Naphtha’s discount to Brent widened to $8.60 a barrel from $8.44 yesterday, PVM data shows.

Middle Distillates

Eni secured as much as 30,000 tons of diesel from BP at a premium of $40 a ton to January gasoil futures, the survey showed. The company bought diesel two days ago at $33 more than gasoil for delivery to the French port of Lavera. It bought cargoes bound for Aliaga on Dec. 2 and Dec. 6.

Diesel barges traded at $13.50 to $15 a ton more than January gasoil, the survey showed. That’s little changed from yesterday.

Total purchased two lots of jet fuel at a premium of $55 a ton to January gasoil, according to the survey. That’s the same as a trade on Dec. 8.

Gasoil for January declined $26.50, or 2.8 percent, to $906 a ton at 5:25 p.m. London time. Front-month Brent decreased by 3.4 percent to $105.75 a barrel.

The fuel’s crack, a measure of refining profitability, shrank to $15.42 a barrel from $15.88 at 4:30 p.m. yesterday, according to ICE data. A gasoil barge changed hands at a premium of $3 a ton to January futures, little changed on yesterday, the survey showed.

Residues

High-sulfur fuel oil barges traded at $594 to $597 a ton, the survey of Platts showed.

Refineries

Repsol YPF SA’s Petronor refinery in Bilbao, Spain, is starting the N2 naphtha desulfurization unit and the P1 platformer unit, according to a statement on its website. The refinery can process 220,000 barrels of oil a day. Platformers make blending components for gasoline.

--With assistance from Helena Athanasiou in London. Editors: Rachel Graham, Rob Verdonck

To contact the reporter on this story: Nidaa Bakhsh in London at nbakhsh@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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