European gasoline barges were bid and offered lowered even as no trades were completed. The fuel’s crack, or premium to Brent crude, declined to the lowest in more than two weeks.
Household and commercial heating oil tanks in Germany, the continent’s largest market for the fuel, dropped in December from a month ago, according to Ipsos Loyalty GmbH. Gasoil slid on the ICE Futures Europe exchange in London.
Gasoline barges in the Amsterdam-Rotterdam-Antwerp oil hub were bid and offered from $953 to $961 a metric ton, according to a Bloomberg survey of traders and brokers monitoring the Argus Bulletin Board. That’s down from $964 to $970 yesterday.
Prompt deliveries of Eurobob grade, to which ethanol is added to finished fuel, traded yesterday at a $4.49 a ton discount to February swaps, according to data compiled by Bloomberg. The market moved into a so-called contango structure on Jan. 11, which may reflect declining near-term demand or rising supply.
Gasoline’s crack, a measure of refining profit, shrank 57 cents to $5.93 a barrel as of 11:20 a.m. local time, according to data from PVM Oil Associates Ltd., a broker in London. That compares with $6.51 a barrel the previous session and is the lowest since Dec. 31.
Naphtha’s crack, or discount to Brent, widened to $8.16 a barrel, PVM data showed. It was $7.92 yesterday after reaching a five-month low at the end of last week.
German household heating oil tanks were 58.7 percent full in December, according to Ipsos. That’s down from 59.9 percent in November and compares with 57.6 percent a year earlier, data sent today in an e-mailed report show.
Commercial inventories fell to 38.4 percent last month, versus 41.5 percent in November. The stockpiles were at 45 percent in December 2011, the Ipsos data showed.
Gasoil for February delivery declined $5.75, or 0.6 percent, to $955 a ton as of 12:29 p.m. on ICE. The contract’s backwardation, or premium to March, shrank $1 to $7.75 a ton. This market structure can signal rising near-term demand or falling supply.
“With this backwardation and the decent winter weather, there will not be a lot of distillates left in tank when winter comes to an end and the diesel demand starts to kick in,” Olivier Jakob, managing director of Switzerland-based researcher Petromatrix GmbH, said today in a note.
Temperatures in Frankfurt are forecast to drop to minus 6 degrees Celsius (21 Fahrenheit) on Jan. 19 from minus 3 today, according to data from CustomWeather Inc. Temperatures will also fall below zero in London, Paris and Amsterdam this week, the data show.
Gasoil’s crack climbed to $17.71 a barrel versus $17.58 at 4:30 p.m. yesterday. Brent rose 0.2 percent to $110.53 a barrel.
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