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Gasoline Barges Fall in Europe; ICE Gasoil Gains: Oil Products

Dec. 11 (Bloomberg) -- Gasoline for immediate loading in northwest Europe fell to the lowest in more than a month.

Gasoil rose for the first time in seven days on the ICE Futures Europe exchange in London as Brent crude advanced. Demand for the fuel in Germany, Europe’s largest market, may rise as inventories are below average levels, according to OPEC.

Light Products

Gasoline barges in the Amsterdam-Rotterdam-Antwerp hub traded from $934 to $936 a metric ton, according to a Bloomberg survey of traders and brokers monitoring the Argus Bulletin Board. That’s the lowest level since Nov. 7 and compares with trades from $938 to $944 yesterday.

Trafigura Beheer BV bought and sold the Eurobob grade, to which ethanol is added to make finished fuel. Barge trades are typically for 1,000 to 2,000 tons.

The fuel’s crack, or premium to Brent, was little changed at $4.39 a barrel as of 11:07 a.m. local time, according to PVM Oil Associates Ltd., a crude and products broker in London.

Naphtha’s discount to Brent widened to $4.18 a barrel from $3.50 yesterday, PVM data showed.

The discount has shrunk from $7.43 a barrel on Nov. 22, the data show. Naphtha demand is increasing from petrochemicals in Asia, especially Japan, the Organization of Petroleum Exporting Countries said in a report today.

Middle Distillates

Gasoil for December delivery, which expires tomorrow, rose $4.75, or 0.5 percent, to $908.50 a ton on the ICE exchange as of 12:27 p.m. local time. The January contract was at $913.

Futures are headed for a fourth-quarter decline for the first time since 2008 as the region’s recession saps demand during the peak winter season. Prices have tumbled 8 percent in the quarter through today, leaving the cost of the fuel for shipment this month lower than for January for the 22nd consecutive day, the longest period of contango in more than 16 months, according to data compiled by Bloomberg.

Demand for the fuel may rise as temperatures drop, according to OPEC. Domestic tanks in Germany were 59.9 percent full in November, down from 60.2 percent a year ago, according to data from Ipsos Loyalty GmbH.

“The important German market is currently at lower-than-average levels, but its buying activity should improve when colder weather arrives in Europe,” OPEC said.

Gasoil’s crack increased to $14.31 a barrel versus $13.94 at 4:30 p.m. yesterday. Brent increased 0.8 percent to $108.21 a barrel.

To contact the reporter on this story: Nidaa Bakhsh in London at nbakhsh@bloomberg.net

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

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