Litasco Sells Gasoline; Naphtha Discount Widens: Oil Products

OAO Lukoil’s Litasco sold gasoline for loading in northwest Europe for a fourth day. Gasoil fell as much as 0.7 percent on the ICE Futures Europe exchange.

Naphtha’s crack, or discount to Brent, widened to the most in 3 1/2 years as demand slumps.

Light Products

Gasoline barges for immediate loading in Amsterdam- Rotterdam-Antwerp traded at $925 and $926 a metric ton, according to a survey of brokers and traders monitoring the Argus Bulletin Board. That compares with yesterday’s deals from $910 to $917, the lowest since Dec. 21, data compiled by Bloomberg show.

Statoil ASA sold the Eurobob grade, to which ethanol is added to make finished fuel, for a second day. Royal Dutch Shell Plc bought for a third day on the barge market where lots are typically of 1,000 tons or 2,000 tons.

Gasoline’s premium to Brent was unchanged at $10.82 a barrel as of 12 p.m. local time, according to data from PVM Oil Associates Ltd., a broker in London.

Naphtha’s crack, a measure of refining profitability, was at $15.19 a barrel, PVM data show. That’s the largest discount since Dec. 19, 2008.

“Activity in the naphtha market remains subdued and shows no signs of recovery,” Vienna-based JBC Energy GmbH said in an e-mailed report today. “In Europe, petrochemical requirements remain poor on the back of weaker manufacturing and industrial activity, while cheaper alternative feedstock prices such as propane and butane have also weighed on naphtha demand.”

Middle Distillates

Gasoil for July delivery fell as much as $6.25 to $839.75 on the ICE exchange in London and was at $846.75 as of 1:04 p.m. London time. The August contract was at $842.75 a ton, putting the spread between the two months at $4.

Gasoil’s crack, a measure of refining profitability, fell to $16.23 a barrel. Brent gained 0.5 percent to $97.58 a barrel.

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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