Gasoline for immediate loading in northwest Europe traded at less than $1,000 a metric ton for the first time in more than three months.
Gasoil futures declined for a fourth day as Brent crude dropped. The Coryton refinery in the U.K., which is operating under a tolling deal that runs out later today, will receive its second crude cargo in two days, according to IHS Inc. ship- tracking data compiled by Bloomberg.
Gasoline barges for loading in Amsterdam-Rotterdam-Antwerp traded at $995 to $998 a ton, according to a survey of brokers and traders monitoring the Argus Bulletin Board. That compares with yesterday’s deals at $1,004 to $1,017. The fuel last traded below $1,000 on Feb. 3, data compiled by Bloomberg show.
Total SA was the main seller of the Eurobob grade to which ethanol is added to make finished fuel. Barge deals are typically for lots of 1,000 tons or 2,000 tons.
Gasoline’s crack, or premium to Brent, rose to $8.28 a barrel as of 11 a.m. local time, according to data from PVM Oil Associates Ltd., a refined-products broker in London. That compares with $8.22 yesterday
Naphtha’s discount to Brent narrowed to $11.09 a barrel, PVM data show. That compares with $11.35 yesterday, the widest spread since Nov. 30.
“The glut of naphtha in Europe is not being cleared,” Olivier Jakob, managing director at Petromatrix GmbH, a Zug, Switzerland-based researcher, said today in a note. “European naphtha needs to go to a deeper discount to push itself out to the Far East.”
Gasoil for June delivery fell 0.3 percent to $929.25 a ton as of 11:42 a.m. local time on the ICE Futures Europe exchange in London. The July contract was at $926.75, causing the discount to front-month futures, or backwardation, to widen to $3 from $2.50 yesterday.
Gasoil’s crack, a measure of refining profitability, increased to $13.61 a barrel from $13.53 yesterday. Brent declined 0.9 percent to $111.25 a barrel.
The Eagle Tucson is scheduled to arrive in Coryton later today, the IHS ship-tracking data show. It is sailing from Teesport in northeast England and carried about 586,000 barrels of fuel on its last voyage, according to shipbroker data compiled by Bloomberg.
The shipment is the refinery’s second in as many days before a supply agreement with Morgan Stanley, KKR & Co. and AtlasInvest ends at midnight.
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