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European Diesel, Naphtha Rise as Trafigura Buys: Oil Products

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Jan. 8 (Bloomberg) -- European diesel rose to the most in a month as Trafigura Beheer BV bought five lots on the barge market. Gasoline’s crack, or premium to Brent crude, advanced to the highest in almost three months.

Naphtha gained as Trafigura bought cargoes for the fourth time in five sessions. Gasoil climbed on the ICE Futures Europe exchange in London as Brent rose.

Light Products

Vitol Group sold a naphtha cargo at $934 a metric ton, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. That compares to $929 and $933 yesterday. Vitol offloaded seven lots in the past three sessions, data compiled by Bloomberg show.

Naphtha’s crack, or discount to Brent, narrowed to $5.82 a barrel as of 2:02 p.m. London time, from $6.01 the previous session, according to data from PVM Oil Associates Ltd.

Gasoline barges traded at $978 and $983 a ton in the Amsterdam-Rotterdam-Antwerp area, according to a similar survey of the Argus Bulletin Board and the Platts. That compares with deals from $970 to $981.50 yesterday and is the highest since Oct. 19.

Gunvor Group Ltd., Chevron Corp. and Total SA sold the Eurobob grade, to which ethanol is added to make finished fuel. Trafigura, Cargill Inc. and Gunvor bought the barges which typically comprise 1,000 to 2,000 tons.

Gasoline’s crack rose to $7.39 a barrel, according to PVM data. It was $7.09 yesterday and $8.34 on Oct. 12.

Middle Distillates

Diesel barges rose to trade at $23 a ton more than January gasoil versus plus $20 to $21 in the previous session and plus $24 on Dec. 6, the survey of Platts showed. BP Plc was the only seller, and Vitol bought one shipment.

Heating oil barges traded at a $1 discount to January gasoil as Chevron and Mercuria Energy Trading SA bought from Vitol and Gunvor. That compares with deals from a $1 discount to parity to the marker yesterday.

Jet fuel barges changed hands at premiums of $74 and $75 a ton to February gasoil as Morgan Stanley and Royal Dutch Shell Plc bought, the survey of Platts showed. Air France-KLM and BP sold the fuel. Barges traded at plus $78 a ton to February gasoil and plus $76 to the January contract on Jan. 4.

Gasoil for January delivery rose $7, or 0.8 percent, to $945.50 as of 5:09 p.m. London time on the ICE exchange. The contract’s discount to February futures was $1.50 a ton, keeping the market in contango, a structure that can signal falling demand or rising supply.

Gasoil’s crack advanced to $15.24 a barrel versus $14.81 in the previous session. Brent gained 0.4 percent to $111.85 a barrel on ICE.

Residues

High-sulfur fuel oil changed hands from $605 to $606.50 a ton, the survey of Platts showed. That compares with $602.50 to $603.50 yesterday.

Tenders

Egyptian General Petroleum Corp. issued two tenders to buy three gasoline cargoes through February, according to two people with knowledge of the matter.

The state-owned company is seeking to buy one 30,000 ton lot for delivery from Jan. 20 to Jan. 22 to the port of Suez, the people said, asking not to be identified because the information is confidential. Two other shipments are for delivery to the Mediterranean port of Alexandria at the end of January and late February.

To contact the reporter on this story: Konstantin Rozhnov in London at krozhnov@bloomberg.net

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

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