Vitol Sells Diesel; BP Plans Rotterdam Unit Halt: Oil Products

Vitol Group sold ultra-low-sulfur diesel in Europe. Gasoil barge discounts shrank.

BP Plc plans to shut a gasoline-making unit at its Rotterdam oil refinery, Europe’s second-largest, for planned maintenance next month, according to a person with knowledge of the matter.

Light Products

Gasoline for immediate loading in Amsterdam-Rotterdam- Antwerp traded at $1,105 to $1,110 a metric ton, according to a survey of traders and brokers monitoring the Argus bulletin board. That’s down from $1,127 yesterday.

Royal Dutch Shell Plc was the biggest buyer of the Eurobob grade, to which ethanol is added to make finished fuel. Barges are usually of 1,000 or 2,000 tons. Gunvor Group Ltd. was the main seller.

Gasoline’s crack, or premium to Brent crude, advanced 15 cents to $12.12 a barrel at 5:17 p.m. local time, according to data from PVM Oil Associates Ltd., a crude and products broker in London.

Naphtha’s discount to Brent shrank to $6.81 a barrel from $7.06 yesterday, PVM data showed.

Middle Distillates

AIC Ltd. and Vitol sold barges of diesel to Morgan Stanley, according to a survey of traders and brokers monitoring the Platts pricing window. The shipments changed hands at $30.50 and $31 a ton more than October gasoil on the ICE Futures Europe exchange in London, little changed from yesterday.

Heating oil barges traded at discounts of $3 a ton, compared with $4 in the previous session, the survey of Platts showed. Gunvor sold to Cargill Inc.

Gasoil for October delivery fell for the second day, losing $24.25 to trade at $986.25 a ton as of 5:19 p.m. local time on the ICE exchange.

October’s premium to the next month, or backwardation, grew to $4 a ton, the biggest spread since July 11, excluding expiry- day anomalies. The market structure reflects rising near-term demand or falling supply.

Gasoil’s crack, a measure of refining profitability, fell to $18.97 a barrel at 4:30 p.m., little changed from yesterday. Brent declined 1 percent to $112.69 a barrel.

Residues

High-sulfur fuel oil changed hands at $643 to $645 a ton, according to the survey of Platts. That compares with $660 to $661 a ton in the previous session. The low-sulfur grade traded at $699.75 to $702 a ton, down from $719 to $721 yesterday.

Refineries

BP’s fluid catalytic cracking unit at its Rotterdam refinery will be idled for about four weeks, according to the person, who declined to be identified as they’re not authorized to speak publicly about the matter. Carlo Eijkels, a BP spokesman in Rotterdam, declined to comment when contacted by phone today.

The unit, known as an FCC, has the capacity to process 62,000 barrels daily, according to data compiled by Bloomberg. The Rotterdam refinery can handle about 377,000 barrels of crude a day, the data show.

Galp Energia SGPS SA (GALP), Portugal’s biggest oil company, said it is supplying refined products normally as workers take part in a three-day strike that’s scheduled to end tomorrow.

Galp yesterday said some units at its refineries had been halted while others were operating at lower levels due to the strike. The company’s Oporto plant in northern Portugal can process about 90,000 barrels of oil a day, while its site in Sines, on the coast south of Lisbon, has a capacity of 220,000 barrels a day.

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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