Bloomberg News

Greenergy Buys Europe Gasoline; Gasoil Shrinks: Oil Products

January 24, 2012

Jan. 24 (Bloomberg) -- Greenergy International Ltd. bought a 10,000 metric-ton cargo of gasoline for delivery to the U.K. from Glencore International Plc.

Gasoil barge discounts narrowed in Europe after Petroplus Holdings AG, Europe’s largest independent refiner, said it plans to file for insolvency. The company’s Coryton plant in the U.K. is running at about 115,000 barrels a day, according to a Petroplus official.

Light Products

Greenergy purchased the cargo of unleaded gasoline from Glencore at $984 a ton, according to a survey of brokers and traders monitoring the Platts pricing window, which ends at 4:30 p.m. London time.

Gasoline barges for immediate loading in Amsterdam- Rotterdam-Antwerp traded from $962 to $967 a ton, according to a survey of the Argus Bulletin Board and Platts. That compares with deals at $963 and $964 yesterday.

Gunvor Group Ltd. and BP Plc bought the Eurobob grade, to which ethanol is added to make finished fuel. Cargill Inc. and Morgan Stanley were also buyers. Morgan Stanley and Gunvor also sold, along with Statoil ASA, Total SA and Chevron Corp.

The fuel’s crack, or premium to Brent crude, was little changed at $5.57 a barrel, according to PVM Oil Associates Ltd., a crude and refined products broker in London. Naphtha’s discount to Brent widened to $5.92 a barrel from $5.55 the previous session, PVM data show.

Middle Distillates

Ultra-low-sulfur diesel barge premiums rose to $14.50 and $15 versus February gasoil, according to the Platts survey. That compares with deals at $13 and $14 a ton more than ICE gasoil yesterday.

Barges of gasoil traded at discounts of $2.50 and $3 to February gasoil, the Platts survey showed. That’s smaller than trades at $3 and $4 a ton the previous session. Shell was the only seller to Mabanaft BV and Gunvor.

Total sold a 30,000 ton cargo of jet fuel to BP at $2.50 a ton less than the northwest Europe benchmark price.

Gasoil for February advanced 0.3 percent to $939.75 a ton at 5:03 p.m. local time on the ICE exchange. The March contract gained 0.2 percent to $941.25. That reduced the front-month contract’s premium to $1.50 from $2.50 yesterday.

Gasoil’s crack, a measure of refining profitability, increased to $16.34 a barrel at 4:30 p.m. from $15.59 yesterday. Front-month Brent declined 0.4 percent to $110.13 a barrel on the ICE exchange.

Residues

High-sulfur fuel oil traded at $659.50 to $665 a ton, according to the survey of Platts. Yesterday’s deals were struck from $659 to $661.50.

Refineries

Petroplus will seek to ensure that operations are “safely shut down and to preserve value for all stakeholders,” according to a statement today. Only two of the company’s five European refineries are operating after credit lines were suspended last month. The plants at Coryton and Ingolstadt, Germany, are running at reduced capacity.

Coryton is processing at about half of its 220,000 barrel- a-day capacity, said a company official who declined to be identified because the person isn’t authorized to speak to the media, said in a telephone interview. The refinery is producing about 100,000 metric tons of ultra-low-sulfur diesel a month and 60,000 to 70,000 tons of jet fuel, the official said.

--With assistance from Helena Athanasiou, Rupert Rowling and Stephen Cunningham in London and Thomas Mulier in Geneva. Editors: Rachel Graham, Alessandro Vitelli

To contact the reporter on this story: Lananh Nguyen in London at lnguyen35@bloomberg.net

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


The Good Business Issue
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus