Already a Bloomberg.com user?
Sign in with the same account.
Feb. 15 (Bloomberg) -- European gasoil futures advanced to an nine-month high, tracking crude, following a report that Iran cut exports to six countries in the region.
Gasoline’s premium to Brent, or its crack, dropped for a second day. The administrator responsible for Petroplus Holdings AG’s Coryton refinery in the U.K. secured at least three months of oil supply for the plant.
The front-month gasoline crack dropped to $6.97 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.
“Europe faces the most challenging environment, with refineries biased towards producing gasoline, demand for which is declining” in the region, Miswin Mahesh, an analyst at Barclays Plc, said today in an e-mailed report.
Demand for gasoline in France dropped 4.6 percent in January from a year earlier, Union Francaise des Industries Petrolieres, an industry group, said today. U.S. consumption dropped last week to the lowest level in the seven-year history of MasterCard Inc.’s SpendingPulse report.
Gasoline for immediate loading in Amsterdam-Rotterdam- Antwerp traded from $1,040 to $1,047 a metric ton, according to a survey of brokers and traders monitoring the Argus Bulletin Board. 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.
Naphtha’s discount to Brent widened to $4.69 a barrel from $3.85 yesterday, PVM data show.
Gasoil for March delivery advanced as much as $17.50, or 1.8 percent, to $1,009.75 a ton on the ICE Futures Europe exchange in London. That’s the highest since May 4. The contract was at $1,002.75 a ton as of 1:35 p.m. local time.
Gasoil’s crack, a measure of refining profitability, was little changed at $15.14 a barrel. Front-month Brent increased 1.35 percent to $118.93 a barrel on ICE.
Diesel demand in France, which accounted for 81.4 percent of the country’s fuel consumption in January, rose 2.8 percent last month from a year earlier, according to UFIP, the industry group.
Morgan Stanley, KKR & Co. and AtlasInvest agreed to keep Petroplus’s Coryton refinery supplied with oil, 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, Helena Athanasiou, Claire Borchers and Will Kennedy in London. Editors: Rachel Graham, Alessandro Vitelli
To contact the reporter on this story: Rupert Rowling in London at firstname.lastname@example.org
To contact the editor responsible for this story: Stephen Voss at email@example.com