Gasoil Ship Rates Jump in Europe as BP Charters Oil Tankers

Rates to ship gasoil in northwest Europe had this year’s biggest weekly increase after BP Plc (BP/) booked tankers to carry refined fuel from the region to Algeria, draining vessel supply.

Charter costs for flexi-size ships transporting 22,000 metric tons of the heating fuel to Le Havre, France, from Ventspils in Latvia climbed 1.9 percent to 189.58 Worldscale points today, according to data from the London-based Baltic Exchange. They jumped 17 percent for the week.

Rates advanced on increased bookings by BP of larger Handysize oil tankers to haul refined fuels to the Mediterranean region, Braemar Seascope Ltd. said in a report. Reduced supply of Handysizes in northwest Europe boosted rates for competing flexi-size vessels, the London-based shipbroker said.

While tankers carrying refined fuels can handle cargoes including gasoline, jet fuel and diesel, most 22,000-ton shipments on the Ventspils-Le Havre trade route are gasoil, according to Braemar. Costs may rise into June, it said.

Toby Odone, a BP spokesman in London, declined to comment by phone today. The company is Europe’s second-biggest oil producer. A Handysize vessel can carry about 30,000 tons.

To contact the reporter on this story: Rob Sheridan in London at rsheridan6@bloomberg.net

To contact the editor responsible for this story: Alaric Nightingale at anightingal1@bloomberg.net

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