European Diesel Barges Rise; Glencore Sells Gasoil: Oil Products
European diesel rose for a second day as Morgan Stanley bought on the barge market. Total SA purchased a cargo of the fuel for at least a sixth day.
Glencore International Plc sold a gasoil cargo for delivery to Greece. Vitol Group purchased two cargoes of naphtha, bringing its total for the month to 24.
Trafigura Beheer BV sold the naphtha lots at $938 and $947 a metric ton, according to a survey of traders and brokers monitoring the Platts pricing window.
Naphtha’s discount to Brent narrowed for a second session to $5.27 a barrel as of 1:21 p.m. local time, according to data from PVM Oil Associates Ltd., a crude and products broker in London. That compares with $5.54 on Oct. 19.
Barges of gasoline for loading in the Amsterdam-Rotterdam- Antwerp hub traded at $970 to $978 a ton, according to a similar survey of the Argus Bulletin Board. That compares with deals in the previous session at $1,004 to $1,010 and is the lowest since July 26, data compiled by Bloomberg show.
Trafigura bought the Eurobob grade, to which ethanol is added to make finished fuel, for a sixth day. Barges usually trade in lots of 1,000 tons to 2,000 tons.
The fuel’s crack fell to $4.67 a barrel from $4.79 in the previous session, PVM data showed.
Royal Dutch Shell Plc sold the shipment of diesel to Total for delivery to Amsterdam, Netherlands at a $37 premium to November gasoil on the ICE Futures Europe exchange in London, the Platts survey showed. That compares with deals to northwest Europe on Oct. 19 at $33 and $39 more than gasoil futures.
On the barge market, diesel changed hands at premiums of $43 to $45 to November gasoil, the survey showed. That’s up from trades at $38 to $41 in the previous session.
Vitol bought the cargo of as much as 30,000 tons of heating oil for delivery to Elefsis, Greece, at $2 less than benchmark prices, according to the survey.
Heating oil barges traded at $11 and $12 more than November gasoil, down from $14 on Oct. 18, the survey showed.
Money managers’ net-long bets on ICE gasoil futures and options increased to 94,315 positions from 88,519 last week, according to data from ICE Futures Europe. That’s the highest since at least the start of 2011 when Bloomberg starting compiling the data.
Gasoil for November delivery dropped 2 percent to $977 a ton as of 5:42 p.m. London time on the ICE exchange. The contract for December was at $962 a ton, narrowing its discount to front-month to $15.
Gasoil’s crack, or premium to Brent, fell to $19.50 a barrel as of 4:30 p.m. versus $19.97 on Oct. 19. Brent was little changed at $110.05 a barrel.
High-sulfur fuel oil traded at $605.75 to $607.50 a ton, the Platts survey showed. That’s less than deals in the previous session at $611 to $612.50. The low-sulfur grade changed hands at $637.50 to $638 a ton, down from $648 on Oct. 18.
Unipetrol AS, the Czech Republic’s largest refiner, will close its Kralupy refinery for at least 10 days because of a shortage of crude oil from the TAL pipeline, which flows from Trieste, Italy, through Austria and into Germany.
The refinery will shut Oct. 25 after crude from TAL stopped Oct. 20 because Unipetrol processed more than planned, Mikulas Duda, a company spokesman, said by telephone. The facility had been scheduled for a shutdown in November. The plant can process 68,000 barrels of crude a day, according to data compiled by Bloomberg.
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