Vitol Buys More Naphtha; BP Sells French Jet Fuel: Oil Products

Vitol Group bought two cargoes of naphtha, bringing its total for the month to 15. The company also purchased two shipments of gasoil for delivery to Greece.

BP Plc sold a consignment of jet fuel for delivery to northern France. Two cargoes of diesel also changed hands.

Light Products

Trafigura Beheer BV and Glencore International Plc were the sellers of the naphtha cargoes, according to a survey of brokers and traders monitoring the Platts pricing window. The fuel traded at $966 and $968 a metric ton, which is less than yesterday’s deals at $989.

Naphtha’s discount to Brent widened for a fifth day to $6.53 a barrel from $5.88 in the previous session as of 1:45 p.m. local time, according to data from PVM Oil Associates Ltd., a crude and products broker in London. That’s the biggest spread since Sept. 20.

Barges of gasoline for loading in the Amsterdam-Rotterdam- Antwerp hub traded from $1,056 and $1,084 a ton, according to a similar survey monitoring the Argus Bulletin Board. That compares with yesterday’s range of $1,087 to $1,100.

Phillips 66 and Total SA were the largest sellers of the Eurobob grade, to which ethanol is added to make the finished fuel. Royal Dutch Shell Plc was the main buyer of barges, which usually trade in lots of 1,000 tons to 2,000 tons.

The fuel’s crack, or premium to Brent, fell to $8.79 a barrel, PVM data showed. That compares with $9.81 yesterday.

Middle Distillates

Shell bought 30,000 tons of jet fuel for delivery to Le Havre, France, at a premium of $9 to benchmark prices, according to the Platts survey. That compares with $4 on Oct. 1.

On the barge market, the aviation fuel traded at premiums of $90 and $92 to November gasoil on the ICE Futures Europe exchange in London, the survey showed. That’s up from deals yesterday at $89.

Mercuria Energy Trading SA sold a cargo of diesel to BP for delivery to Wilhelmshaven, Germany at a $57 premium to November gasoil, the Platts survey showed. Total bought a shipment of the fuel from Koch Industries Inc. at $65 more than the futures contract for delivery to Bordeaux in France. Those trades compare with yesterday’s deals at $52 and $59.

Shell, Morgan Stanley and Vitol were the main buyers of diesel on the barge market as it changed hands at premiums of $46 to $51 to November gasoil. That’s down from $52 to $54 in the previous session.

Gunvor Group Ltd. sold both the heating oil cargoes for delivery to Eleusis in Greece at a premium of $5 to November gasoil and at a $6 discount to benchmark prices in the region, the survey showed.

On the barge market, heating oil changed hands at premiums of $11 to $14 to November gasoil. That compares with Oct. 10 deals at a discount of $6 to the October contract.

Gasoil for November delivery decreased 2.4 percent to $1,000.75 a ton as of 5:20 p.m. London time on ICE. The December contract was at $987.50.

Gasoil’s crack, or premium to Brent, fell to $19.95 a barrel as of 4:30 p.m. versus $20.60 yesterday. Brent dropped $1.48 to $114.23 a barrel.

Residues

High-sulfur fuel oil traded at $616 to $622 a ton, down from $626 to $629 a ton yesterday, the survey of Platts showed. The low sulfur grade changed hands at $654 to $657 a ton, versus $665 in the previous session.

Refineries

Global refiners will process 400,000 barrels a day less crude in the fourth quarter because of plant halts and a lower demand outlook, according to the IEA.

Rates will drop to 75.4 million barrels a day in the period compared with 75.8 million in the third quarter, the Paris-based agency said today in its monthly report.

European refiners, “buoyed by a dramatic turnaround in refining margins” have been postponing seasonal maintenance and are processing more crude through the system, amid reduced output capacity from last year, according to the report.

Serbia’s Naftna Industrija Srbije AD, an oil refiner controlled by OAO Gazprom Neft, bought a fuel storage facility in Kostinbrod in neighboring Bulgaria, the company said in a statement.

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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