Europe Gasoline Crack Widens; ICE Gasoil Declines: Oil Products

European gasoline barges dropped from the highest level in almost three months as Total SA sold. The fuel’s crack, or premium to Brent crude, widened to the most since October.

Gasoil for February delivery fell for the first time in five days on the ICE Futures Europe exchange as Brent declined.

Light Products

Gasoline barges in the Amsterdam-Rotterdam-Antwerp oil hub traded from $970 to $979 a metric ton, according to a Bloomberg survey of traders and brokers monitoring the Argus bulletin board. Deals were done at $987 to $994.50 a ton yesterday, the highest since Oct. 19. BP Plc and Gunvor Group Ltd. bought 2,000 ton barges of the Eurobob grade, to which ethanol is added to make finished fuel.

Gasoline’s crack rose 28 cents to $7.49 a barrel as of 10:58 a.m. local time, the most since Oct. 12, according to data from PVM Oil Associates Ltd., a broker in London.

Naphtha’s crack, or discount to Brent, was little changed at $6.90 a barrel, PVM data show. That was $6.91 yesterday, the most since Nov. 23.

Middle Distillates

Gasoil for February delivery fell 1.4 percent to $945.25 a ton, as of 12:35 p.m. London time. The contract was $4.50 a-ton in backwardation, or premium, to March. The market structure can signal rising demand or falling supply.

Gasoil’s crack, which is also a measure of refining profit, narrowed to $16.37 a barrel versus $16.52 a barrel at 4:30 p.m. yesterday. Brent lost 1.2 percent to $110.54 a barrel.

Gasoil inventories in the ARA-area are rebuilding toward the five-year average, as demand has been limited by milder- than-normal weather in the region, Harry Tchilinguirian, head of commodity-markets strategy at BNP Paribas SA in London, said in e-mailed comments today.

The fuel’s stockpiles in independent storage in ARA increased 5.1 percent to 2.13 million tons in the week to Jan. 10, PJK International BV said yesterday. That is the highest since Oct. 4 and below the five-year average, data compiled by Bloomberg show.

Temperatures in Frankfurt, Germany, Europe’s biggest market for the fuel, were above the five-year average for most of December and so far in January, according to data compiled by Bloomberg.

Residues

An upward trend in ARA fuel oil stockpiles in recent weeks, if continued, may eventually encourage shipments of the product to Asia, Tchilinguirian said.

Fuel oil inventories in independent storage increased to 923,000 tons, the most in two months, according to PJK.

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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