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Gasoline Barges Gain; Italian Gasoil Demand Drops: Oil Products

European gasoline rose as Gunvor Group Ltd. bought on the barge market. The fuel’s crack, or premium to Brent crude, fell for the fourth time in five days.

Italy’s gasoil demand dropped about 14 percent last month, the biggest decline since September, according to data from the Ministry of Economic Development.

Light Products

Gasoline barges in the Amsterdam-Rotterdam-Antwerp oil hub changed hands at $965 to $966 a metric ton, according to a Bloomberg survey of traders and brokers monitoring the Argus Bulletin Board. That’s up from $964 yesterday.

Chevron Corp. and Total SA sold the Eurobob grade, to which ethanol is added to finished fuel. Gunvor and Trafigura Beheer BV were buyers of barges, which typically comprise 1,000 to 2,000 tons.

Gasoline’s crack, a measure of refining profit, shrank 16 cents to $6.60 a barrel, as of 10:35 a.m. local time, according to data from PVM Oil Associates Ltd., a broker in London. That’s down from $6.75 yesterday.

Naphtha’s crack, or discount to Brent, narrowed 24 cents to $8.03 barrel, according to PVM data. It was $8.27 yesterday.

Middle Distillates

Italy’s gasoil demand, which includes heating oil and diesel, dropped to 2.21 million tons in December from 2.55 million a year earlier, according to the ministry data.

Gasoil for February delivery was little changed at $954.25 a ton as of 1:04 p.m. on ICE. The contract’s backwardation, or premium to March shrank 75 cents to $7 a ton. This market structure can signal rising near-term demand or falling supply.

Gasoil’s crack fell to $17.03 a barrel versus $17.85 at 4:30 p.m. yesterday. Brent rose 0.4 percent to $110.09 a barrel.

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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