Bloomberg News

BP Buys More Diesel Cargoes; Europe Gasoline Drops: Oil Products

March 15, 2012

BP Plc bought two cargoes of European diesel, bringing its total purchases to six this week, and purchased another 26,000 tons on the barge market.

Gasoline barges dropped more than $30 within the session after crude fell as much as 3.2 percent. April gasoil fell on the ICE Futures Europe exchange.

Light Products

Gasoline (MOGEEURB) for immediate loading in Amsterdam-Rotterdam- Antwerp traded from $1,104 to $1,137 a metric ton, according to a survey of brokers and traders monitoring the Argus Bulletin Board and Platts pricing window. That compares with deals at $1,129 to $1,139 yesterday, when prices rose to the highest since May 4.

Gunvor Group Ltd. and Chevron Corp. sold Eurobob grade, to which ethanol is added to make motor fuel. Royal Dutch Shell Plc, Cargill Inc. and Trafigura Beheer BV and Northville, a unit of NIC Holding Corp., bought.

Gasoline’s crack, or premium to Brent crude, was at $12.77 a barrel, versus $12.92 yesterday, according to data from PVM Oil Associates Ltd., a crude and products broker in London.

Naphtha’s crack, or discount to Brent, shrank to $4.33 a barrel from $5.25 yesterday, PVM data showed. That’s the lowest in more than a week.

Middle Distillates

BP bought cargoes of ultra-low-sulfur diesel for delivery to the U.K. and Italy at premiums of $31 and $39 a ton to April gasoil, according to the Platts survey. That compares with four purchases on March 13 from $30 to $40 more than April gasoil.

Barges (DIEN10PS) of the fuel changed hands at premiums of $19 to $20 more than April futures. That’s within the March 13 trading range. BP bought all the shipments except one, which was purchased by Morgan Stanley. Vitol Group was the main seller.

Morgan Stanley bought a 30,000 ton cargo of jet fuel for delivery to Antwerp from BP, the Platts survey showed. The shipment was partly priced at a premium of $72 to April gasoil which compares with the March 8 deal between the two companies at a $69 premium.

In the jet barge market, the premium to gasoil fell, according to the survey. Koch Industries Inc. sold 2,000 tons to BP at $66 more than April gasoil. That’s lower than the March 13 deals at a $69 premium.

Gasoil for April delivery dropped $13, or 1.3 percent, to $1,025.50 a ton as of 5:56 p.m. London time on the ICE exchange.

The gasoil crack, a measure of refining profitability, rose to $14.04 a barrel at 4:30 p.m. versus $13.71 yesterday. Brent fell 1 percent to $123.75 a barrel.

Residues

High-sulfur fuel oil traded at $698 to $701 a ton, versus $711.50 to $714 a ton yesterday, the Platts survey showed.

Tenders

Libya’s state-run National Oil Corp. is seeking to sell liquefied petroleum gas for delivery this year, a tender document obtained by Bloomberg News showed.

Refineries

Bayernoil Raffinerie GmbH, a joint venture between four European oil companies, is starting its Vohburg (VHBGCRUD) oil plant in Germany today after three weeks of maintenance, the company said in an e-mailed statement.

The company said on March 8 that work on a crude distillation unit, vacuum distillation plant and sulfur facility would finish this week after starting two weeks earlier.

The refinery has two crude units with a total processing capacity of 6 million metric tons a year, according to the company’s website. That’s about 120,000 barrels a day. Austria’s OMV AG owns 45 percent of Bayernoil. Ruhr Oel GmbH holds 25 percent, Eni SpA’s German unit has a 20 percent share and BP Plc has a 10 percent stake.

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