Bloomberg News

BP Buys Fourth Diesel Cargo; Shell Sells Jet: Oil Products

March 23, 2012

BP Plc bought its fourth cargo of diesel this week. Gasoil rose on the ICE Futures Europe exchange in London, snapping three days of declines.

Eni SpA, Italy’s largest energy company, may cut domestic refining capacity if market conditions worsen, Chief Executive Officer Paolo Scaroni said today in Milan.

Light Products

Gasoline (MOGEEURB) for immediate delivery in the Amsterdam-Rotterdam- Antwerp area traded from $1,120 to $1,134 a metric ton, according to a survey of brokers and traders monitoring the Argus Bulletin Board. That’s up from yesterday’s range of $1,100 to $1,112 a ton.

Chevron Corp. and OAO Lukoil’s Litasco unit were the main sellers of the Eurobob grade, to which ethanol is added to make finished motor fuel. Morgan Stanley bought barge lots, mostly of about 1,000 tons, for a third day. Cargill Inc. and Trafigura Beheer BV bought for a second day, the survey showed.

The front-month gasoline crack, or premium to Brent, increased 9 cents to $13.71 a barrel as of 5:20 p.m. London time, according to data from PVM Oil Associates Ltd., a crude and refined-products broker.

Naphtha’s discount to Brent widened to $5.61 a barrel from $5.54 yesterday, PVM data show.

Middle Distillates

Gasoil futures for April delivery advanced 1.3 percent to $1,027.25 a ton on ICE as of 5:21 p.m. local time.

Diesel barges, which trade at a differential to front-month ICE gasoil futures, were little changed from yesterday, the survey showed. Today’s deals were at premiums of $16 to $16.50.

BP purchased a 20,000-ton diesel shipment from Litasco for delivery to Thames, London, the survey of Platts pricing window showed. The deal was at a $28.50 premium to April gasoil and compares with a March 21 deal at a $32 premium.

BP bought about 100,000 tons of diesel this week, according to Bloomberg estimates.

On jet fuel, Royal Dutch Shell Plc sold a 30,000-ton cargo to Total SA for delivery to Le Havre in northern France, the Platts survey showed. The deal was at $69 more than April gasoil.

Morgan Stanley also bought a shipment of jet fuel from BP, the third deal between the companies this week. The cargo was for delivery to Ghent and partly priced at a $73 premium to April futures. That compares with the March 21 deal at a $71 premium.

Barges (HEATAAAA) of heating oil were unchanged for a second day, trading at a discount of $4 a ton to April futures, the survey showed. Vitol Group sold for a second day.

Residues

High-sulfur fuel oil traded higher at $696 to $701 a ton, the survey of Platts showed. That’s up from yesterday’s deals at $691 to $694.50.

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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