Europe’s Gasoline Crack Widens; ICE Gasoil Falls: Oil Products
Gasoline’s premium to Brent crude, or crack, widened to the highest level in six weeks. Royal Dutch Shell Plc bought the motor fuel in the barge market for at least a second day.
Gasoil on London’s ICE Futures Europe exchange dropped as Brent fell. The heating fuel’s premium to Brent shrank. Repsol YPF SA started two units at its refinery in Bilbao, Spain.
Gasoline barges for immediate loading in Amsterdam- Rotterdam-Antwerp traded at $917 to $922 a metric ton, according to a broker monitoring the Argus Bulletin Board. That compares with yesterday’s deals from $907 to $931.
Shell was the main buyer, securing 7,000 tons of the 11,000 tons that changed hands. Gunvor Group Ltd. and Trafigura Beheer BV were the main sellers. The trades are for Eurobob grade to which ethanol is added to make finished motor fuel and are typically for lots of 1,000 tons or 2,000 tons.
Gasoline’s premium to Brent expanded to $1.87 a barrel from $1.74 yesterday, according to PVM Oil Associates Ltd., a crude and products broker in London. That’s the most since Nov. 2.
Naphtha’s discount to Brent widened to $8.68 a barrel from $8.44 yesterday, PVM data shows.
Gasoil for January declined 1.3 percent to $920.75 a ton at 12:54 p.m. London time, according to ICE exchange data. Front- month Brent decreased by 1.2 percent to $108.23 a barrel.
The fuel’s crack, a measure of refining profitability, shrank to $15.36 a barrel from $15.88 at 4:30 p.m. yesterday according to ICE data.
Repsol’s Petronor refinery in northern Spain is starting the N2 naphtha desulfurization unit and the P1 platformer unit, according to a statement on its website. The refinery can process 220,000 barrels of oil a day. Platformers make blending components for gasoline.
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