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Morgan Stanley Buys Jet Fuel Cargo; Gasoil Rises: Oil Products

March 7 (Bloomberg) -- Morgan Stanley bought a cargo of jet fuel for delivery to the French port of Le Havre.

European diesel premiums to the front-month gasoil contract on the ICE Futures Europe exchange rose the highest level in more than four weeks. Gasoil barge discounts narrowed versus the same measure as BP Plc purchased for a third day.

Light Products

Gasoline for immediate loading in Amsterdam-Rotterdam-Antwerp traded from $1,098 to $1,104 a metric ton, according to a survey of traders and brokers monitoring the Argus Bulletin Board. That’s up from yesterday’s trades from $1,082 to $1,100.

Trafigura Beheer BV bought the Eurobob grade, to which ethanol is added to make finished fuel. Total SA sold barges for a fourth day. Barge lots are usually 1,000 or 2,000 tons.

The front-month gasoline crack, or premium to Brent, advanced to $10.89 a barrel, according to data from PVM Oil Associates Ltd., a London-based crude and fuel broker. That’s up from $10.34 yesterday and $7.40 a year ago, the data show.

Naphtha’s crack, or discount to Brent, narrowed for a second day to $5.11 a barrel, PVM data showed. That compares with $5.37 yesterday.

Middle Distillates

Diesel, which trades at a differential to ICE gasoil, advanced to the highest level since Feb. 6.

Diesel barge differentials rose to $20 a ton more than March gasoil, according to a similar survey of the Platts pricing window. That’s up from deals yesterday at $14 and $15 a ton. Vitol Group sold two lots of 2,000 tons each to North Sea Group.

The diesel market in the Atlantic Basin is experiencing “severe tightness,” Valero Energy Corp. said in a presentation posted yesterday on its website.

U.S. stockpiles of distillate fuels, which include diesel, dropped last week, the Department of Energy said today. Inventories are the lowest for the time of year since 2008, the data show.

Royal Dutch Shell Plc sold the 30,000 ton cargo of jet fuel to Morgan Stanley, the survey showed. The shipment was priced at a premium of $69 to April gasoil. Morgan Stanley bought a jet fuel cargo on Feb. 16.

Heating oil barges traded at discounts of $1 and $1.50 to gasoil futures, compared with $2 and $2.50 yesterday. About 31,000 tons changed hands, with BP the main buyer.

March gasoil advanced $5.25, or 0.5 percent, to $1,011.25 a ton on ICE as of 5:19 p.m. London time.

The gasoil crack, a measure of refining profitability, dropped 11 cents to $12.67 a barrel on ICE as of 4:30 p.m. London time. Front-month Brent rose 1.2 percent to $123.48 a barrel on the London exchange.

Residues

High-sulfur fuel oil traded from $696.75 to $699 a ton, little changed from yesterday, the Platts survey showed.

Refineries

Mineraloelraffinerie Oberrhein GmbH halted units at its Karlsruhe refinery in Germany for planned repairs and inspections. The partial shutdown began at the end of February and will last about four weeks, the company said in a statement on its website.

Tamoil SA halted its Collombey refinery in Switzerland on March 2 because of a technical fault, according to the Romandie news service.

The plant is scheduled to start at the end of the week, Romandie said late yesterday on its website, citing the company. The refinery can process about 50,000 barrels a day.

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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