Bloomberg News

European Gasoline at Four-Month High, Crack Falls: Oil Products

February 01, 2012

Feb. 1 (Bloomberg) -- European gasoline rose to the highest in more than four months as Mercuria Energy Trading SA bought on the barge market. The motor fuel’s premium to Brent crude, or crack, declined.

BP Plc provided a crude cargo for Petroplus Holdings AG’s U.K. Coryton refinery, allowing operations to continue, according to two people with knowledge of the situation.

Light Products

Gasoline for immediate loading in Amsterdam-Rotterdam- Antwerp traded from $1010 to $1012 a metric ton, according to a survey of brokers and traders monitoring the Argus Bulletin Board. That’s the highest since Sept. 19 and compares with deals from $993.50 to $999 yesterday, according to data compiled by Bloomberg.

The fuel rose 7.8 percent in January, extending a 2.4 percent gain in December.

Mercuria, Royal Dutch Shell Plc, Cargill Inc. and Trafigura Beheer BV bought Eurobob grade fuel, to which ethanol is added to make the finished motor fuel. Mabanaft BV, Vitol Group, Gunvor Group Ltd. and Koch Industries Inc. sold.

The front-month gasoline crack, or premium to Brent, dropped to $8.40 a barrel from $8.71 yesterday, according to data from PVM Oil Associates Ltd., a London-based broker. The spread rose to an eight-month high of $10.11 on Jan. 27.

Naphtha’s discount to Brent widened to $1.90 a barrel from $1.70 in the previous session, PVM data showed. Yesterday’s spread was the lowest since May 10.

Middle Distillates

Gasoil for February delivery rose 0.9 percent, or $8.50, to $957.75 a ton on the ICE exchange in London as of 1:12 p.m. local time. The heating fuel advanced 2.7 percent last month.

That contract traded at a discount to March futures of 50 cents, unchanged from yesterday. The product’s crack, a measure of refining profit, was at $16.37 a barrel compared with $16.41 yesterday, according to ICE data. Brent crude rose 1.2 percent to $112.26 a barrel.

Refineries

BP’s shipment to the Coryton refinery is a one-time delivery and not part of a long-term arrangement, one of the people said, declining to be identified because the matter is confidential. Robert Wine, a London-based BP spokesman, declined to comment when contacted today by phone.

--With assistance from Claire Borchers and Nidaa Bakhsh in London. Editors: Rachel Graham, Rob Verdonck

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


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