Bloomberg News

Europe Gasoline, Gasoil Rise to Three-Month Highs: Oil Products

February 01, 2013

European gasoline barges rose for a 12th day to the highest level in more than three months. Gasoil futures advanced to the highest since October.

Royal Dutch Shell Plc (RDSA) will permanently halt gasoline and diesel production at its Hamburg oil refinery in Germany at the end of March as the company converts part of the site into storage facilities. OAO Lukoil extinguished a fire at its Ploiesti refinery in Romania.

Light Products

Gasoline in the Amsterdam-Rotterdam-Antwerp oil hub traded from $1,073 to $1,076 a ton, according to a Bloomberg survey of traders and brokers monitoring the Argus Bulletin Board. That’s the highest since Oct. 11 and compares with deals from $1,056 to $1,062 yesterday. The product advanced 12 percent last month.

Gunvor Group Ltd. Vitol Group and Chevron Corp. (CVX:US) sold the Eurobob grade, to which ethanol is added before being sold at the pump. Lukoil’s Litasco unit, Argos Groep BV and Trafigura Beheer BV bought barges, which typically comprise 1,000 and 2,000 tons.

Gasoline’s crack, or premium to Brent crude, rose 24 cents to $13.54 a barrel as of 10:44 a.m. local time, according to PVM Oil Associates Ltd., a London-based broker. That’s down from $13.92 on Jan. 30, the most in four months.

Naphtha’s crack, or discount to Brent crude, widened to $8.31 a barrel, PVM data showed. That’s the biggest loss in three weeks.

Middle Distillates

Gasoil rose to more than $1,000 a ton on the ICE Futures Europe exchange in London for the first time since October, extending a 7.1 percent advance last month.

Futures for February delivery gained as much as $8.75, or 0.9 percent, to $1,001.75 a ton, the highest since Oct. 19. The contract was at $999.25 a ton at 1:48 p.m. London time.

The contract’s premium, or backwardation, to March futures was at $10.25 a ton. That’s unchanged from the spread yesterday and on Jan. 30, which was the widest gap since Oct. 30. The market structure may signal falling near-term supply or rising demand.

Gasoil’s crack fell to $16.62 versus $16.76 as of 4:30 p.m. yesterday. Brent rose 52 cents to $116.07 a barrel.

Refineries

Shell will decommission one of the crude oil distillation units and the catalytic cracker at its Hamburg refinery, Cornelia Wolber, a Shell spokeswoman, said today in an e-mail. Catalytic crackers are used in gasoline production.

The fire at Lukoil’s 48,000 barrel-a-day Ploiesti plant occurred in a delayed coker unit which was scheduled to undergo maintenance in a few days, according to a company spokesman who asked not to be identified, citing company policy. No other operations were affected, he said.

To contact the reporter on this story: Lananh Nguyen in London at lnguyen35@bloomberg.net

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


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