European Gasoline Rises; ICE Gasoil Backwardated: Oil Products

European gasoline climbed for a fourth day as Royal Dutch Shell Plc bought on the barge market.

Gasoil advanced to the highest level in more than two weeks on the ICE Futures Europe Exchange. The market moved into backwardation, a structure that signals near-term scarcity of supply or rising demand.

Light Products

Gasoline in the Amsterdam-Rotterdam-Antwerp area traded from $955 to $957 a ton, according to a Bloomberg survey of traders and brokers monitoring the Argus Bulletin Board. That compares with deals at $950 and $951 yesterday.

Gunvor Group Ltd. and Trafigura Beheer BV sold the Eurobob grade, to which ethanol is added to make finished fuel. Shell, Vitol Group and Cargill Inc. bought shipments of 1,000 and 2,000 tons.

The fuel’s crack, or premium to Brent crude, fell for a second day to $4.93 a barrel as of 10:53 a.m. London time, according to data from PVM Oil Associates Ltd., a crude and products broker. It was at $5 yesterday.

Gasoline demand in the U.K. fell 5.6 percent to 1.1 million tons in October from a year earlier, data from the Department of Energy and Climate Change showed.

Naphtha’s crack, or discount to Brent, widened to $3.41 a barrel, the biggest spread since Dec. 14, PVM data showed. It was $3.28 the previous session.

Middle Distillates

Gasoil for January delivery rose as much as $8, or 0.9 percent, to $945 a ton, the highest since Dec. 4, and was at $944.25 as of 1:20 p.m. local time. The February contract was at a 25 cent discount to the front month.

The market had traded in contango, where near-term supplies being cheaper than later-dated deliveries, for most of the past 28 days.

Gasoil’s crack increased to $16.36 a barrel versus $15.92 as of 4:30 p.m. yesterday. Brent fell 10 cents to $110.26 a barrel on the ICE exchange.

Diesel consumption in the U.K. rose 0.3 percent in October to 1.8 million tons from the same month last year, DECC said.

Rhine River

The Rhine River section near Karlsruhe, where the 310,000 barrel-a-day Miro refinery is located, opened after a one-day closure, Thomas May, an official from the Wasserschutzpolizei, said by phone. Barge traffic is subject to speed restrictions in that area because of high water levels, May said.

The barge clearance level on the Europe’s busiest inland waterway at Rheinfelden close to the Swiss border fell to 6.94 meters today, a second straight drop, data compiled by Bloomberg show.

To contact the reporter on this story: Konstantin Rozhnov in London at krozhnov@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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