Bloomberg News

Morgan Stanley Buys Jet; Vitol Sells Europe Diesel: Oil Products

August 29, 2012

Morgan Stanley bought a cargo of jet fuel for a second day. Vitol Group sold a shipment of diesel for delivery to France.

Trafigura Beheer BV purchased gasoline on the barge and cargo market. Gasoil rose for the first time in four sessions on the ICE Futures Europe exchange in London.

Light Products

Morgan Stanley sold the 25,000 metric-ton cargo of gasoline at $1,098 a ton for loading at Santa Panagia Bay in Italy, according to a survey of traders and brokers monitoring the Platts pricing window. That compares with trades for shipment to the U.K. at $1,089 and $1,090 on Aug. 10.

Gasoline barges for immediate loading in Amsterdam- Rotterdam-Antwerp traded from $1,090 to $1,096 a ton, according to a similar survey of the Argus Bulletin Board. That compares with yesterday’s deals from $1,093 to $1,102.

Trafigura bought the Eurobob grade, to which ethanol is added to make finished fuel, for at least a seventh day. Gunvor Group Ltd. and BP Plc (BP/) sold barge lots which are usually 1,000 tons or 2,000 tons.

Gasoline’s crack, or premium to Brent, fell for the first time in five sessions to $16.31 a barrel as of 1:28 p.m. local time, according to data from PVM Oil Associates Ltd., a broker in London. That compares with $16.56 in the previous session.

Naphtha’s discount to Brent crude was little changed at $5.09 a barrel, PVM data show. The discount has narrowed $3.59 a barrel, or 41 percent, since the start of the month.

Naphtha has gained because of “improved petrochemical margins and re-emerging Asian demand,” David Wech, analyst at Vienna-based JBC Energy GmbH, said today in an e-mailed report.

Middle Distillates

Vitol sold two 30,000 ton lots of jet fuel for delivery to northwest Europe, the Platts survey showed. BP bought one cargo for delivery to the Isle of Grain in the U.K. partially priced at a $4 premium to benchmark prices and at $91 more than September gasoil.

Morgan Stanley purchased the other consignment for delivery to Antwerp in Belgium at parity to benchmark prices and at a $93 premium to front-month gasoil. That compares with a similar trade yesterday at $96 more than September gasoil.

On the barge market, BP sold a lot of the aviation fuel to Royal Dutch Shell Plc (RDSA) at a $1.50 discount to benchmark prices.

Total SA bought the diesel cargo for delivery to Le Havre in northern France partially priced at parity to benchmark prices and at $31.50 more than September gasoil, the survey showed. That compares with Aug. 16 deals into northwest Europe at premiums of $37, $40 and $42.

On the diesel barge market, Morgan Stanley was the buyer for at least a seventh day, according to Platts. North Sea Group sold 2,300 tons at $33 more than September gasoil. That’s down from yesterday’s deal at $34 and $36.

Gasoil for September delivery gained $1 to $980 a ton on the ICE exchange in London as of 5:19 p.m. local time. The October contract was at $979.25 a ton.

Gasoil’s crack, a measure of refining profitability, dropped to $19.09 a barrel as of 4:30 p.m. from $19.20 yesterday. Brent was little changed at $112.53 a barrel.

Residues

High-sulfur fuel oil traded at $640.50 to $642.25 a ton, according to the survey of Platts. That compares with $641 to $642.50 in the previous session. The low-sulfur grade changed hands at $701 and $701.50 up from $693.50 a ton yesterday, the survey showed.

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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