Bloomberg News

BP Buys Three Diesel Cargoes; Total Sells Gasoil: Oil Products

March 26, 2012

BP Plc bought three cargoes of diesel for delivery to France, paying a higher price for a shipment to the north and a lower rate into the Mediterranean. Barge premiums rose for the first time in eight days.

The gasoline crack, or premium to Brent, rose to an 11- month high. Total SA sold a gasoil shipment.

Light Products

The front-month gasoline crack advanced to $14.92 a barrel as of 5:00 p.m. London time, according to data from PVM Oil Associates Ltd., a broker. That’s the most since May 10.

The gasoline crack is up from $3.95 at the end of last year, poised for its first quarterly gain since the first three months of 2011.

Gasoline (MOGEEURB) for immediate delivery in the Amsterdam-Rotterdam- Antwerp area traded from $1,135 to $1,150 a metric ton, according to a survey of brokers and traders monitoring the Argus Bulletin Board. That’s up from a range of $1,120 to $1,134 a ton on March 23 and is the most since May 3.

Cargill Inc. bought for a third day on the barge market, where lots are usually of 1,000 or 2,000 tons. Total SA and Gunvor Group Ltd. were the largest sellers of Eurobob grade, to which ethanol is added to make finished motor fuel.

Naphtha’s discount to Brent narrowed to $5.44 a barrel from $5.56 in the previous session, PVM data show.

Middle Distillates

Diesel barges, which trade at a differential to front-month gasoil on the ICE Futures Europe exchange, rose from the previous session, according to a similar survey of Platts pricing window. Today’s deals were at premiums of $16 to $18 compared with $16 to $16.50 on March 23.

BP purchased three shipments of diesel with a combined volume of 80,000 tons. That brings its total for the month to 18 cargoes, according to Bloomberg estimates.

Vitol Group sold a shipment to Le Havre at $30 more than April gasoil, the survey showed. That compares with a trade March 22 at a $28.50 premium.

Vitol and Repsol YPF SA were the sellers of shipments to Lavera, each for as much as 30,000 tons. The trades were carried out at premiums of $29 and $33 a ton to April futures respectively. That compares with the March 21 trade at $34.50.

On heating oil, Total sold a 30,000-ton cargo to Trafigura Beheer BV for delivery to Koper in Slovenia, the Platts survey showed. Glencore International Plc also bought a similar-sized shipment from Gunvor for delivery into Elefsis in Greece.

Total’s shipment was at a $2 premium to the Mediterranean benchmark while the Glencore deal was partly priced at $12 more than April gasoil.

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

Gasoil futures for April delivery were little changed at $1,029.25 a ton on ICE as of 5:20 p.m. local time. The May contract was at $1,030.50.

The product’s crack dropped to $12.89 a barrel at 4:30 p.m. London time, compared with $13.19 on March 23.

Residues

High-sulfur fuel oil traded from $702 to $703.50 a ton, the survey of Platts showed. That’s up from March 23 deals at $696 to $701.

Refineries

A fire earlier today at Shell’s Pernis plant was extinguished quickly with no impact on production, Wim van de Wiel, a Shell spokesman in The Hague, said by phone today. The blaze occurred after a drip leakage and was put out with a dry- powder extinguisher, according to Esther Versteeg, a spokeswoman for the regional fire department.

Pernis can process 416,000 barrels a day, according to data compiled by Bloomberg.

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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