Five European Diesel Cargoes Trade; Naphtha Falls: Oil Products

As much as 110,000 metric tons of diesel traded on the cargo market with Vitol Group the largest seller. Royal Dutch Shell Plc bought a shipment of jet fuel for delivery to France.

Naphtha fell as Gunvor Group Ltd. and Shell sold. Greenergy International Ltd. bought a gasoline cargo for U.K. delivery.

Light Products

Trafigura Beheer BV and Vitol bought cargoes of naphtha, according to a survey of brokers and traders monitoring the Platts pricing window. The shipments changed hands at $790 and $793 a metric ton, down from $809 yesterday.

Naphtha’s crack, or discount to Brent, widened to $11.49 a barrel as of 2:29 p.m. local time from $10.79 yesterday, according to data from PVM Oil Associates Ltd., a broker in London.

Morgan Stanley sold the 10,000-ton cargo of gasoline for delivery to the Tees, U.K., the survey showed. The trade was carried out at $988 a ton. That compares with a deal to Italy on July 2 at $918 a ton.

Gasoline barges for loading in the Amsterdam-Rotterdam- Antwerp hub traded from $975 to $984 a metric ton, according to a survey of both the Platts window and the Argus Bulletin Board. That compares with deals from $954 to $960 yesterday.

BP Plc (BP/) bought the Eurobob grade, to which ethanol is added to make finished fuel, for a third day. Gunvor sold for a second day on the barge market, where trades are typically for lots of 1,000 tons or 2,000 tons.

The fuel’s crack, or premium to Brent, was little changed at $11.62 a barrel, PVM data show.

Middle Distillates

Vitol sold cargoes of diesel to Mercuria Energy Trading SA, BP and Shell for delivery to Le Havre in France and Amsterdam, the survey of Platts showed. The trades to France were at $3.50 a ton more than benchmark prices while the Dutch deal was at a $26 premium to gasoil on the ICE Futures Europe exchange in London. Those compare with a June 27 trade to Le Havre at a $1.50 premium to benchmark prices.

Eni SpA bought a 30,000-ton shipment from Repsol YPF SA for delivery to Gaeta in Turkey at $4 more than benchmark prices. PetroChina Co. sold a cargo to Shell for U.K. delivery at $31 more than July gasoil.

On the barge market, diesel changed hands at a $30 premium to July gasoil, the survey showed. That’s up from deals yesterday at $27 and $28.

BP sold the cargo of 30,000 tons of jet fuel for delivery to Le Havre, France, the survey showed. It was partly priced at parity to benchmark prices and at a premium of $56 to July gasoil. That compares with a June 27 deal at $2 more than the benchmark and $58 more than gasoil futures.

Morgan Stanley bought two barges of the aviation fuel from BP at $59 more than July gasoil, little changed from earlier trades, according to the survey.

Barges of heating oil traded at a $3 discount to gasoil futures, down from $2 yesterday, the survey showed. The lower sulfur grade traded at $29 more than July gasoil, unchanged from the previous session.

Gasoil for July delivery fell 0.4 percent to $877.50 a ton on the ICE Futures Europe exchange as of 5:19 p.m. London time. The August contract was at $871.25 a ton, widening the spread between the two contracts to $6.25, the most since May 10.

Gasoil’s crack rose to $17.25 a barrel from $16.94 yesterday. Brent crude dropped 0.9 percent to $99.77 a barrel.

Refineries

Statoil ASA will cut 70 jobs by the end of the year from its Mongstad refinery due to the plant making losses last year and internal projects being postponed or canceled, according to a company spokesman.

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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