Glencore Sells Europe Naphtha; Diesel Barges Drop: Oil Products

Naphtha declined in northwest Europe as Glencore International Plc sold two cargoes. Exports of the product to Asia this month may be little changed from October.

Diesel barge premiums dropped from a four-year peak relative to November gasoil on the ICE Futures Europe exchange in London. Jet fuel advanced.

Light Products

Three cargoes of naphtha traded from $915 to $920 a metric ton, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. That’s down from $926 to $928 yesterday. Glencore and Trafigura Beheer BV sold to Koch Industries Inc. and BP Plc.

The continent’s naphtha exports to Asia in November will remain near the highest level in at least 34 months, according to a Bloomberg survey of traders and shipbrokers.

Shipments of naphtha to Asia may reach 800,000 tons this month, according to the median response in a survey of five traders. Volumes rose to 850,000 tons in October, the highest level since Bloomberg began conducting the poll in January 2010.

Naphtha’s crack, or discount to Brent, was little changed at $5.12 a barrel as of 1:58 p.m. local time, according to PVM Oil Associates Ltd., a crude and products broker in London.

Gasoline for loading in the Amsterdam-Rotterdam-Antwerp hub traded from $933 to $940 a ton, according to a survey of traders and brokers monitoring the Argus Bulletin Board and Platts pricing window. That’s within yesterday’s range from $932 to $960 a ton.

Royal Dutch Shell Plc bought barges for at least the ninth day. Trafigura and Total SA also purchased the Eurobob grade, to which ethanol is added to make finished fuel. Statoil ASA, Chevron Corp., Vitol Group and Hess Corp.’s Hetco unit were sellers of barges, which usually comprise 1,000 to 2,000 tons.

The fuel’s crack, or premium to Brent crude, was little changed at $3.52 a barrel, the PVM data showed.

Middle Distillates

Ultra-low-sulfur diesel barges dropped to trade at premiums of $57 to $60 to November gasoil on the ICE exchange, according to the survey of Platts. That’s down from $66 yesterday, which was the highest since April 2008. North Sea Group and Glencore sold to Vitol and Morgan Stanley.

BP sold three barges of jet fuel to Vitol and Shell, the survey of Platts showed. One of the lots traded at $84 a ton more than November gasoil, up from $77 yesterday. The other two lots traded at premiums of $79 and $82 to the December contract.

Heating oil barges changed hands at a discount of $1 a ton and at parity to November gasoil. That compares with trades at minus $3 yesterday. Shell and Glencore bought, while Morgan Stanley and Vitol sold.

Gasoil for November delivery dropped $6, or 0.6 percent, to $925 a ton as of 5:08 p.m. London time on the ICE exchange. The December contract was at a 75 cent discount to the front month, keeping the market in backwardation, a structure that signals near-term scarcity of supplies or increased demand. That’s unchanged from yesterday.

Gasoil’s crack was little changed at $16.79 a barrel at 4:30 p.m., declining from $16.94 the previous session. Brent climbed 0.5 percent to $107.33 a barrel.

Residues

High-sulfur fuel oil traded from $571.50 to $573 a ton, the Platts survey showed. That compares with $580 to $581.25 in the previous session. The low-sulfur grade traded at $603 versus $611 yesterday.

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

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.