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Europe Naphtha Rises as Vitol Buys; Diesel Gains: Oil Products

European naphtha rose to the highest in more than two months as Vitol Group bought five cargoes, bringing its total since the start of last week to 22 lots.

European diesel premiums gained to the highest level in seven sessions as Gunvor Group Ltd and North Sea Group bought on the barge market. Gasoil fell on the ICE Futures Europe exchange in London as Brent crude dropped.

Light Products

Naphtha traded from $960 to $966 a metric ton, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. That’s the highest since Oct. 17, data compiled by Bloomberg show.

Trafigura Beheer BV and Glencore International Plc (GLEN) sold while Gunvor bought and sold a cargo. Vitol bought five consignments on Dec. 24, Bloomberg data show.

Naphtha’s crack, or discount to the benchmark, was $3 a barrel as of 2:36 p.m. local time, according to data from PVM Oil Associates Ltd., a crude and products broker in London. It was $2.51 in the previous session, the narrowest since Jan. 31.

The number of naphtha cargoes to be exported from the continent to Asia fell to five this month compared with seven a fortnight earlier, shipping data showed.

About 358,000 metric tons of the feedstock for gasoline and petrochemicals were scheduled to load on vessels this month, down from 480,000 tons two weeks earlier, according to data from shipbrokers including Galbraith’s Ltd. Some fixtures are provisional and may be changed or canceled.

Gasoline in the Amsterdam-Rotterdam-Antwerp area traded from $962 to $967 a metric ton, according to a survey of the Argus Bulletin Board. That compares with deals at $936 to $938 on Dec. 24.

BP Plc (BP/) and Total SA (FP) sold barges, which trade in lots of 1,000 and 2,000 tons. Royal Dutch Shell Plc (RDSA), Cargill Inc. and Vitol bought the Eurobob grade, to which ethanol is added to make finished fuel.

The fuel’s crack, or premium to Brent, widened to $5.79 a barrel, from $5.36 on Dec. 24, PVM data showed.

Gasoline stockpiles in independent storage in Europe’s Amsterdam-Rotterdam-Antwerp oil-trading hub fell 5 percent to 624,000 tons in the week to today, according to PJK International BV.

Middle Distillates

In the diesel barge market, BP sold 14 lots at $17 and $18 a ton more than January gasoil on ICE, the Platts survey showed. That’s up from $13 to $16 on Dec. 24 and matches the level on Dec. 14.

BP sold a 30,000 ton jet fuel cargo to Total at $3 more than benchmark prices, the survey showed. The consignment is for delivery to Le Havre, France.

Gunvor sold a gasoil barge to Fritz Meyer AG at a discount of $3 a ton to January futures. That’s compared with discounts of $1 to $2 on Dec. 21.

Gasoil for January delivery fell $1.75, or 0.2 percent, to $939.50 a ton as of 5:22 p.m. London time.

Front-month futures traded at parity to the February contract. The market closed yesterday in contango, a structure that may signal falling prompt demand or increasing supplies.

Gasoil’s crack, or premium to Brent, declined to $15.74 a barrel versus $16.17 as of 12:30 p.m. Dec. 24. Brent fell 79 cents to $110.28 a barrel on the ICE exchange.

Gasoil inventories increased 3 percent to 1.92 million tons in independent storage in Amsterdam-Rotterdam-Antwerp, according to PJK.

Residues

High-sulfur fuel oil changed hands from $577.75 to $582 a ton, the survey of Platts showed. That compares with $568 to $570.75 a ton on Dec. 24. The low-sulfur grade traded at $607, versus $597 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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