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Vitol Buys Naphtha Cargoes; European Diesel Falls: Oil Products

European naphtha rose as Vitol Group bought five cargoes, extending its purchases in the past week to about 18 lots. Diesel barges weakened as BP Plc sold.

Gasoil fell on the ICE Futures Europe exchange in London as Brent crude weakened. Hedge fund and other money managers reduced bullish bets on the oil product, ICE data showed

Light Products

Naphtha traded at $951 to $953 a metric ton, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. The window closed at 12:30 p.m. London time, four hours earlier than usual due to the two-day Christmas holiday period starting tomorrow.

Glencore International Plc, Gunvor Group Ltd, Total SA and Royal Dutch Shell Plc sold. Shipments of the fuel traded from $947 to $948 a ton on Dec. 21.

Naphtha’s crack, or discount to Brent, was $2.94 a barrel as of 10:44 a.m. local time, the narrowest since Jan. 31, according to data from PVM Oil Associates Ltd., a crude and products broker in London. It was $3.06 in the previous session.

Gasoline in the Amsterdam-Rotterdam-Antwerp area dropped to trade from $936 to $938 a metric ton, according to a survey of the Argus Bulletin Board. That compares with deals at $944 to $956 on Dec. 21.

Gunvor and Total sold the barges, where lots of 1,000 and 2,000 tons are traded. Buyers of the Eurobob grade, to which ethanol is added to make finished fuel, were BP Plc, OAO Lukoil’s Litasco unit, Shell, Cargill, Vitol and Morgan Stanley.

The fuel’s crack, or premium to Brent crude, narrowed to $5.19 a barrel, from $5.28 on Dec. 21, PVM data showed.

Middle Distillates

In the diesel barge market, BP and Shell sold from $13 to $16 a ton more than January gasoil on ICE, the Platts survey showed. That’s down from $17 on Dec. 21. Mocoh SA, Omneo Trading and Fritz Meyer AG bought.

Gasoil for January delivery fell $3.75, or 0.4 percent, to $928.75 a ton as of 1:23 p.m. London time.

Gasoil’s crack, or premium to Brent, fell to $16.17 a barrel versus $16.30 as of 4:30 p.m. Dec. 21. Brent fell 62 cents to $108.35 a barrel on the ICE exchange.

Money managers’ net-long bets on gasoil fell 138 lots to 40,518 positions in the week to Dec. 18 from 40,656 in the previous period, ICE data showed.

Residues

High-sulfur fuel oil changed hands from $568 to $570.75 a ton, the survey of Platts showed. That compares with $568 to $572.25 a ton on Dec. 21. The low-sulfur grade traded at $597, versus $593 to $596 in the previous session.

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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