Bloomberg News

BP Buys European Jet Fuel; Vitol Sells Gasoil: Oil Products

February 15, 2012

Feb. 15 (Bloomberg) -- BP Plc bought jet fuel on the cargo and barge markets as well as diesel for an 11th day. March gasoil rose to a nine-month high on ICE Futures Europe exchange while Vitol Group sold a cargo of the heating fuel.

The administrators of Petroplus AG Holding’s Coryton refinery in the U.K. said that a group, including Morgan Stanley, has agreed to keep the refinery supplied with crude for at least the next three months.

Light Products

Gasoline for immediate loading in Amsterdam-Rotterdam- Antwerp traded from $1,040 to $1,059 a metric ton, according to a survey of brokers and traders monitoring the Argus Bulletin Board and Platts pricing window. That compares with deals from $1,041 to $1,051 yesterday. Those prices are for barge lots, usually of 1,000 or 2,000 tons.

The front-month gasoline crack dropped to $6.74 a barrel from $7 yesterday, according to PVM Oil Associates Ltd., a London-based broker. The crack declined from $10.11 a barrel on Jan. 27 amid concern that demand is falling.

Naphtha’s discount to Brent widened to $4.87 a barrel from $3.85 yesterday, PVM data show.

Middle Distillates

Vitol sold a diesel cargo to Total SA for delivery into the north France port of Le Havre at $2 a ton below the French benchmark, according to the survey of Platts.

On diesel barges, BP bought for an 11th day as premiums were little changed from yesterday, the survey showed. Trades were done from $16.50 to $17.50 a ton more than March gasoil.

French diesel demand rose 2.8 percent in January compared with a year earlier, according to the Union Francaise des Industries Petrolieres. Diesel accounted for 81.4 percent of the country’s fuel consumption last month, UFIP said in a statement.

Vitol also sold a gasoil cargo to Trafigura Beheer BV for delivery into the Slovenian port of Koper at $5 a ton more than the Mediterranean benchmark, the survey showed. That’s the fourth gasoil shipment to have traded this month.

On jet fuel, BP bought a 30,000 ton cargo from Royal Dutch Shell Plc for delivery into Le Havre, France on the vessel Trochus at 50 cents below the benchmark.

BP also bought jet fuel barges, purchasing two lots from Air France-KLM at $53 a ton to March gasoil, according to the survey. That’s the same price as yesterday’s deals.

Gasoil for March rose as much as $17.50 to $1,009.75 a ton on ICE, that’s the highest since May 4. The April contract rose to $1,004.75 a ton, widening the spread between the two months to $5 a ton.

Gasoil’s crack, a measure of refining profitability, was little changed at $15.33 a barrel. Front-month Brent increased 0.48 percent to $118.64 a barrel on ICE.

Residues

High-sulfur fuel oil increased, trading from $690 to $691 a ton, the survey of Platts showed. That compares with deals yesterday at $679.75 to $682.25 a ton. The low-sulfur grade traded at $718, up from $712 and $712.25 a ton.

Refineries

Morgan Stanley, KKR & Co. and AtlasInvest agreed to keep Petroplus’s Coryton refinery supplied with crude, avoiding the closure of the insolvent refiner’s U.K. plant.

“Crude oil will be delivered to the Coryton refinery for processing for an initial period of three months,” partners at PricewaterhouseCoopers LLP, Petroplus’s U.K. administrators, said today. Crude will be supplied under a tolling agreement.

--With assistance from Lananh Nguyen and Claire Borchers in London. Editors: Raj Rajendran, Rachel Graham.

To contact the reporter on this story: Rupert Rowling in London at rrowling@bloomberg.net

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


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