Vitol Buys More Europe Naphtha; Jet Fuel Advances: Oil Products

European naphtha declined even as Vitol Group bought two cargoes, extending its purchases for the past week to about 17 lots. Jet fuel gained as Royal Dutch Shell Plc bought a shipment for a second session.

Gasoline barges weakened as Total SA sold two lots. Gasoil fell for a third session on the ICE Futures Europe exchange in London as Brent crude dropped. Trafigura Beheer BV purchased a diesel cargo.

Light Products

Naphtha traded at $938 a metric ton, down from $947 to $949 in the previous session, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. Trafigura and Glencore International Plc sold the cargoes.

Naphtha’s crack, or discount to Brent, narrowed 10 cents to $4.59 a barrel as of 11:26 a.m. local time, according to data from PVM Oil Associates Ltd., a London-based broker.

Gasoline in the Amsterdam-Rotterdam-Antwerp area traded at $946 a ton, according to similar survey of the Argus Bulletin Board. That compares with deals from $953 to $961 in the previous session.

Vitol and BP Plc bought 2,000 ton barges of the Eurobob grade, to which ethanol is added to make finished fuel.

Gasoline’s crack, or premium to Brent, narrowed for a second session to $5.37 a barrel, PVM data showed. It was $5.81 on Dec. 28.

Middle Distillates

Vitol sold the 30,000 ton jet fuel cargo for delivery to the U.K. partly priced at $7 more than benchmark prices to Shell, the Platts survey showed. That’s up from trades on Dec. 28 at premiums from $4 to $6 a ton. On the barge market, BP bought one lot from Air France-KLM at $80 more than ICE gasoil, according to the survey.

Trafigura purchased a diesel shipment from Vitol for delivery to Fiumicino, Italy at $3 more than benchmark prices. That compares with a Dec. 14 deal to Lavera, France at a discount of $1.75.

In the diesel barge market, lots changed hands at $18 and $19 a ton more than ICE gasoil. That’s little changed to deals at a $19 premium in the previous session.

Gasoil barges strengthened to a discount of $1 a ton to the futures contract compared with minus $2 on Dec. 28.

January gasoil fell $5, or 0.5 percent, to $928 a ton as of 1:01 p.m. London time on the ICE exchange.

Gasoil’s crack narrowed to $14.86 a barrel as of 12:30 p.m. versus $15.31 as of 16:30 p.m. on Dec. 28. Brent fell 92 cents to $109.70 on ICE.

Residues

High-sulfur fuel oil changed hands from $574 to $577 a ton, the survey of Platts showed. That compares with $574.75 to $578 on Dec. 28. The low-sulfur grade traded from $604 to $606 a ton versus $609 to $610 in the previous session.

To contact the reporter on this story: Rupert Rowling in London at rrowling@bloomberg.net

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

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