Bloomberg News

Gasoline Barges Gain in Europe; ICE Gasoil Climbs: Oil Products

December 10, 2012

Gasoline for immediate loading in northwest Europe advanced as Brent crude rallied and BP Plc purchased barge lots.

Hedge funds and other money-managers raised gasoil bullish bets by about 2 percent last week to the most in one month, data from the ICE Futures Europe exchange in London showed.

Light Products

Gasoline for loading in the Amsterdam-Rotterdam-Antwerp hub traded from $938 to $944 a metric ton, according to a survey of traders and brokers monitoring the Argus Bulletin Board. That compares with trades from $921 to $938 on Dec. 7.

Gunvor Group Ltd. sold 4,000 tons of the 7,000 tons that changed hands. The trades, which usually comprise 1,000 to 2,000 tons, are for Eurobob grade, to which ethanol is added to make finished fuel.

The fuel’s crack, or premium to Brent, was little changed at $4.18 a barrel as of 11:12 a.m. local time, according to PVM Oil Associates Ltd., a crude and products broker in London.

Naphtha’s discount to Brent shrank for a third day to $3.60 a barrel, PVM data showed. That’s the least since Nov. 1 and compares with $4.19 in the previous session.

Middle Distillates

Gasoil for December delivery rose $2.75, or 0.3 percent, to $908.50 a ton on the ICE exchange as of 12:12 p.m. local time. January futures were at $912.50. The front-month contract expires on Dec. 12.

That puts the market in contango for 21 trading days, which usually signals reduced prompt demand or rising supply of fuel for immediate delivery. It’s the longest stretch since a run that ended in August last year.

Gasoil’s crack fell to $14.60 a barrel versus $15.03 at 4:30 p.m. in the previous session. Brent increased 0.8 percent to $107.90 a barrel.

Money managers’ net-long bets on ICE gasoil increased to 57,683 positions in the week to Dec. 4 from 56,652 in the previous period, according to the ICE data. That’s the most since Nov. 6.

To contact the reporter on this story: Nidaa Bakhsh in London at nbakhsh@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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