Total Sells Gasoline; ICE Gasoil at Two-Week Low: Oil Products

Gasoline declined in Europe as Total SA sold three of the four lots traded in the barge market.

Gasoil for January delivery dropped to the lowest in more than two weeks on London’s ICE Futures Europe exchange as Brent crude tumbled. The contract’s discount, or contango, to February widened for a third day.

Light Products

Gasoline barges traded from $969 to $978 a metric ton in the Amsterdam-Rotterdam-Antwerp area, according to a survey of traders and brokers monitoring the Argus bulletin board. That’s down from yesterday’s trades at $978 to $980, the top end of the range was the highest price since Nov. 19, data compiled by Bloomberg show.

BP Plc and Cargill Inc. bought the Eurobob grade, to which ethanol is added to make finished fuel. For the second day, Total and Chevron Corp. sold the barges, which typically comprise 1,000 to 2,000 tons.

Gasoline’s crack, or premium to Brent, shrank to $6.40 a barrel as of 10:18 a.m. local time, according to data from PVM Oil Associates Ltd., a broker in London. It was at $6.86 yesterday, the biggest spread in more than 11 weeks.

Tighter gasoline specifications in Russia, which were introduced Jan. 1, may cut supplies of the product, according to JBC Energy GmbH, a researcher in Vienna.

“Russian output of on-specification gasoline is set to decline, potentially bringing sporadic motor fuel shortages due to tight gasoline balances in Russia,” JBC said in a note.

Naphtha’s crack, or discount to Brent, widened for a sixth session to $6.27 a barrel, PVM data showed. That’s the biggest loss since Nov. 26 and compares with $5.99 yesterday.

Middle Distillates

January gasoil declined $12.50, or 1.3 percent, to $923.25 a ton as of 12:22 p.m. on the ICE exchange. It earlier dropped to $920.25, the lowest intraday level since Dec. 18.

The contract’s contango to February futures widened to $2.25 a ton from $1.50 yesterday.

Gasoil’s crack rose to $13.52 a barrel versus $13.41 at 4:30 p.m. the previous session. Brent fell 1.3 percent to $110.72 a barrel on ICE.

To contact the reporter on this story: Lananh Nguyen in London at lnguyen35@bloomberg.net

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

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