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Trafigura Buys European Naphtha; Jet Fuel Declines: Oil Products

Jan. 2 (Bloomberg) -- European naphtha gained as Trafigura Beheer BV purchased a cargo from Morgan Stanley. Jet fuel premiums declined relative to January gasoil on the ICE Futures Europe exchange.

Gasoline barges rose to the highest in more than a month. Gasoil futures advanced on ICE as Brent rallied.

Light Products

Trafigura bought the 12,500 metric-ton shipment of naphtha at $950 a ton, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. That’s up from $938 in the previous session.

Vitol didn’t purchase the fuel after buying at least 17 lots in the last week of December, data compiled by Bloomberg show.

Naphtha’s crack, or discount to Brent, widened for a fourth session to $5.83 a barrel as of 2:30 p.m. local time, according to data from PVM Oil Associates Ltd., a crude and products broker in London. That’s the biggest loss since Nov. 27. It was at $4.77 on Dec. 31.

Gasoline barges rose to trade from $976 to $977 a ton in the Amsterdam-Rotterdam-Antwerp area, the survey of Platts showed. That’s the most since Nov. 21, data compiled by Bloomberg show, and compares with deals at $946 on Dec. 31.

Gunvor Group Ltd. sold the Eurobob grade, to which ethanol is added to make finished fuel. Statoil ASA bought the barges lots, which typically comprise 1,000 to 2,000 tons.

Gasoline’s crack, or premium to Brent crude, widened to $6.36 a barrel, PVM data showed. That’s the highest since Oct. 17 and is up from $5.23 the previous session.

Middle Distillates

Jet fuel barges traded at a lower premium, according to the survey of Platts. Air France-KLM sold shipments to Royal Dutch Shell Plc at $78 a ton more than January gasoil on the ICE exchange, which was down from a trade at $80 on Dec. 31.

Shell bought barges of heating oil from Gunvor and Vitol Group at a discount of $2 to gasoil futures, compared with $1 the previous session.

January gasoil rose as much as $21, or 2.3 percent, to $948 a ton on the ICE exchange, the most since on Nov. 19. It traded at $942.25 as of 5:08 p.m. London time. The February contract was at a $1 premium, or contango, to the front month after settling at parity on Dec. 31.

Gasoil’s crack shrank to $14.37 a barrel as of 4:30 p.m. versus $14.83 on Dec. 31. Brent advanced $1.03 to $112.14 a barrel on ICE.

“The front ICE gasoil spreads are flat, the ICE gasoil crack is stable at the lower end of the recent range,” Olivier Jakob, managing director of Switzerland-based researcher Petromatrix GmbH, said in a note Dec. 31.

Residues

High-sulfur fuel oil changed hands from $590 to $593.50 a ton, the survey of Platts showed. That compares with $574 to $577 on Dec. 31.

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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