Bloomberg News

Trafigura Sells Gasoline Cargo; Gasoil Falls: Oil Products

June 14, 2012

Trafigura Beheer BV sold a cargo of gasoline for delivery to Italy. OAO Lukoil’s Litasco sold for a fifth day on the barge market.

Morgan Stanley bought jet fuel and diesel barges for a second day. Gasoil fell on the ICE Futures Europe exchange in London for a second day.

Light Products

Vitol Group bought the shipment of as much as 33,000 metric tons of gasoline for delivery to Santa Panagia, Italy, according to a survey of brokers and traders monitoring the Platts pricing window. The trade was priced at $897 a ton, which is lower than a June 7 deal to the same port at $910.

Gasoline barges for immediate loading in Amsterdam- Rotterdam-Antwerp traded from $924 to $934 a ton, according to a similar survey of both the Platts window and the Argus Bulletin Board. That compares with deal from $921 to $926 yesterday.

BP Plc and Cargill Inc. were the buyers the Eurobob grade, to which ethanol is added to make finished fuel. Barge deals are usually 1,000 or 2,000 tons.

Gasoline’s premium to Brent, or crack, climbed to $12.11 a barrel as of 2:07 p.m. local time, according to data from PVM Oil Associates Ltd., a broker in London. That’s up from $11.47 in the previous session.

Naphtha’s crack, or discount to Brent, narrowed to $15 a barrel, from $15.62 yesterday, which was the most since Dec. 17, 2008, PVM data show.

Middle Distillates

Jet fuel, which trades at a differential to the ICE gasoil contract, was little changed as Morgan Stanley and Royal Dutch Shell Plc bought for a second day, the Platts survey showed. Four lots traded at $59 and $60 more than July gasoil, according to the survey.

On diesel, about 16,400 tons changed hands on the barge market with Vitol the largest buyer for a second day, the survey showed. Premiums to July gasoil were little changed from $24 to $26 a ton.

ConocoPhillips sold two barges of low-sulfur heating oil at $22 and $24 a ton more than July gasoil, according to the Platts survey. That’s up from $17 on June 12.

Gasoil for July delivery fell 0.4 percent to $844 a ton on ICE as of 5:22 p.m. The August contract was at $839.75 a ton, widening the spread between the two contracts to $4.25 a ton from $3.75 yesterday.

Gasoil’s crack rose to $16.44 a barrel from $15.93 yesterday. Brent was little changed at $97.07 a barrel on ICE.

Refineries

A Russian company is in talks to buy the Coryton oil refinery in the U.K., a union official said.

The purchaser would upgrade the facility to produce more diesel, Russ Ball, an official at Unite, the U.K.’s largest labor union, said today by mobile phone from London, declining to identify the company.

The Coryton refinery, owned by Petroplus Holdings AG before it filed for insolvency this year, can process 175,000 barrels a day, according to data compiled by Bloomberg. Gasoline accounts for 36 percent of production, while diesel makes up 27 percent, according to the U.K.’s Petroleum Industry Association. The refinery was to have halted by yesterday, Ball said on June 6.

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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