European Gasoline Declines; ICE Gasoil Drops: Oil Products
European gasoline declined as Trafigura Beheer BV and Chevron Corp. sold on the barge market.
Gasoil slumped with Brent crude on the ICE Futures Europe exchange in London. January gasoil, which dropped as much as 1.3 percent, has technical support at $930.50 a metric ton, according to Futurestechs.com Ltd.
Gasoline for immediate loading in the Amsterdam-Rotterdam- Antwerp hub traded from $953 to $957 a ton, according to a Bloomberg survey of traders and brokers monitoring the Argus Bulletin Board. That compares with trades from $967 to $973 yesterday.
Gunvor Group Ltd. bought two lots of Eurobob grade, to which ethanol is added to make the finished fuel. Trafigura was also a buyer of two barges, which usually comprise 1,000 to 2,000 tons.
The fuel’s crack, or premium to Brent, snapped six days of gains to fall 15 cents to $4.59 a barrel as of 10:48 a.m. local time, according to PVM Oil Associates Ltd., a crude and products broker in London.
Naphtha’s crack, or discount to Brent, widened to $5.49 a barrel, PVM data showed. That compares with $4.99 yesterday.
Gasoil for December delivery declined $12.25, or 1.3 percent, to $937.50 a ton on the ICE exchange as of 12:42 p.m. London time. The January contract was at $940.25.
The market has been in a contango for 17 days, the longest stretch since a run that ended on Aug. 4, 2011. A contango structure usually signals reduced prompt demand or rising supply of fuel for immediate delivery.
January futures have support at $930.50 a ton after prices failed to sustain gains above $962 a ton yesterday, Liam Roberts, an analyst at Futurestechs, a researcher in Billericay, England, said in a note today.
The contract made a so-called bearish shooting star pattern on a candlestick chart yesterday, according to Futurestech. The formation occurs when a security that has been rising has an opening price, intraday low and close well below the session’s high.
Gasoil’s crack fell 14 cents to $16.54 a barrel. Brent dropped 1.2 percent to $109.59 a barrel.
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