Bloomberg News

Diesel Rises in Europe; Jet Fuel Barges Decline: Oil Products

October 11, 2012

Diesel rose in northwest Europe as Total SA purchased a cargo for a fourth day. Jet fuel barges dropped.

Vitol Group purchased a shipment of naphtha, its 13th this month. Gasoil advanced on the ICE Futures Europe exchange in London, with the fuel’s crack, or premium to Brent crude, climbing to the most this week.

Light Products

Two naphtha cargoes changed hands at $989 a metric ton, according to a survey of brokers and traders monitoring the Platts pricing window. That’s $4 less than yesterday’s deal. Royal Dutch Shell Plc was the other buyer. BP and Koch Industries Inc. were the sellers, according to the survey.

Naphtha’s discount to Brent crude widened to $5.61 a barrel as of 2:42 p.m. local time, according to data from PVM Oil Associates Ltd., a crude and products broker in London. That compares with $5.29 yesterday.

Barges of gasoline for loading in the Amsterdam-Rotterdam- Antwerp hub traded at $1,087 to $1,100 a ton, a similar survey of the Argus Bulletin Board showed. That compares with $1,100 to $1,104 yesterday.

The trades are for Eurobob grade, to which ethanol is added to make the finished fuel. Barges usually trade in lots of 1,000 tons to 2,000 tons.

The fuel’s crack, or premium to Brent, fell to $9.61 a barrel from $10.36 in the previous session, PVM data showed.

Spain’s Cia. Espanola de Petroleos SA, or Cepsa, sold a cargo of gasoline to Trafigura Beheer BV, mostly priced at $1,118 a ton, the survey of Platts showed. The consignment was sold for loading at Santa Panagia in Italy.

Middle Distillates

Total purchased a diesel cargo from Gunvor Group Ltd. at a premium of $52 a ton to November gasoil, for delivery to Le Havre in northern France, the survey of Platts showed. That’s $1 higher than a trade yesterday to the same port.

BP Plc also bought a cargo, at $59 a ton more than the gasoil futures contract, for delivery to Wilhelmshaven in Germany, it showed.

Diesel barges changed hands at $52 to $54 a ton more than November gasoil, little changed from yesterday, according to the survey.

Morgan Stanley purchased a barge of jet fuel at a premium of $89 a ton to November gasoil futures, the survey showed. That compares with a trade at $93 on Oct. 9.

Gasoil for November delivery rose 0.2 percent to $1,009.75 a ton as of 5:01 p.m. London time on the ICE exchange. The contract for October, which expired at midday, was last at $1,025.50 a ton.

“At current prices, the upcoming winter will be the most expensive winter ever for the consumers using heating oil,” Olivier Jakob, managing director at Petromatrix GmbH, a researcher in Switzerland, said today in a note.

The amount of 0.1 percent sulphur gasoil to be delivered through ICE this month increased to 318,800 tons, according to data on Intercontinental Exchange Inc.’s website. That compares with 190,000 tons in September and 112,000 tons in October 2011.

Barges of heating oil traded at premiums of $10 to $14 a ton to November futures, the survey showed. Yesterday, a trade took place at $14.

Gasoil’s crack, or premium to Brent, rose to $20.60 a barrel versus $20.21 as of 4:30 p.m. yesterday. Brent advanced 0.6 percent to $115.05 a barrel.

Residues

High-sulfur fuel oil traded at $626 to $629 a ton, in lien with yesterday, the survey of Platts showed. The low sulfur grade changed hands at $665 a ton, versus $660 to $665 in the previous session.

Refineries

Repsol SA shut a fluid catalytic cracker at its La Coruna refinery in Spain yesterday following a fire. The FCC unit remains shut and the rest of the refinery is running normally, the Madrid-based company said today. The refinery has the capacity to process 120,000 barrels of crude a day and the FCC unit can handle 68,000 barrels daily, 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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