Diesel Rises in Europe; Vitol Buys Naphtha Cargo: Oil Products

Diesel rose in northwest Europe as Total SA purchased three cargoes, bringing its total to seven this week. Gasoil surged on the ICE Futures Europe exchange as Brent advanced.

Naphtha gained as Vitol Group bought a consignment, bringing its total for the month to 38.

Light Products

Gasoline barges for immediate loading in Amsterdam- Rotterdam-Antwerp changed hands at $1,090 to $1,098 a metric ton, according to a survey of brokers and traders monitoring the Argus Bulletin Board and Platts pricing window. That compares with trades at $1,070 to $1,079 yesterday.

Greenergy International Ltd. purchased a gasoline cargo from OAO Lukoil at $1,129 a ton for delivery to the U.K., the survey of Platts showed.

Gasoline’s premium to Brent climbed to $18.59 a barrel as of 2:10 p.m. local time, the highest spread in more than five years, according to data from PVM Oil Associates Ltd., a broker in London.

Stockpiles in the ARA-area dropped to the lowest level in almost a year, according to PJK International BV, a researcher in the Netherlands. Inventories slumped 14 percent to 558,000 tons in the week to today, the least since Oct. 6.

Gunvor Group Ltd. sold the naphtha cargo to Vitol at $954 a ton, the survey of Platts showed. That compares to a deal yesterday between the two companies at $929.

Naphtha’s discount to Brent narrowed to $4.60 a barrel from $4.93 yesterday, PVM data show. That’s the least since Sept. 11.

Middle Distillates

Total bought the diesel cargoes from Vitol at premiums of $47 and $49 a ton to October gasoil for delivery to Amsterdam, according to the survey of Platts. That compares with $47 yesterday. Total also purchased a cargo for delivery to the U.K. at a $59 premium.

A diesel barge changed hands at a premium of $38.50 a ton to October gasoil, the survey showed. That compares with $36 and $37 yesterday. A second barge traded at a discount of $1 to the average of benchmark prices, it showed.

Barges of heating oil traded at $2 and $3 a ton less than October futures, it showed. That compares with $2 yesterday.

Gasoil for October delivery surged 2.5 percent to $986 a ton as of 5:21 p.m. London time on the ICE exchange. The contract for November was at $979.

Gasoil’s crack, a measure of refining profitability, dropped to $19.23 a barrel from $19.38 at 4:30 p.m. yesterday. Brent climbed 1.9 percent to $112.15 a barrel.

Fuel Oil

High-sulfur fuel oil traded at $626.50 to $633 a ton, the survey of Platts showed. That compares with $615.50 to $621 yesterday. The low-sulfur grade changed hands at $675, up $10 from the previous session.

Gunvor plans to ship 12.5 million tons of fuel oil this year from its Baltic Sea Ust-Luga product terminal in Russia, according to Konstantin Khamlay, the head of Gunvor’s OAO Rosneftbunker unit.

Refineries

Royal Dutch Shell Plc is carrying out planned maintenance at its Pernis oil refinery in the Netherlands, Europe’s largest.

Work on a number of units at the 400,000 barrel-a-day Pernis refinery started last week and will continue until early November, Wim van de Wiel, a company spokesman in the Netherlands, said today in an e-mail. He didn’t specify the units halted.

Fuel deliveries were disrupted from the ISAB refinery in Priolo, Sicily, a venture of Lukoil and ERG SpA, following a protest by workers, a union official said.

The facility is working normally and production hasn’t stopped, Paolo Zappulla, a local secretary general at CGIL, Italy’s largest union, said today by phone. The plant may reduce output should tanks become full, he said.

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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