Gasoline Falls as Gunvor Sells; ICE Gasoil Drops: Oil Products
European gasoline declined as Gunvor Group Ltd. sold on the barge market and Brent crude fell.
Gasoil dropped on the ICE Futures Europe exchange in London. Front-month futures traded at more than later-dated contracts, keeping the market in backwardation for a second day.
Gasoline in the Amsterdam-Rotterdam-Antwerp area traded from $948 to $956 a metric ton, according to a Bloomberg survey monitoring the Argus Bulletin Board. That compares with deals at $955 to $960 yesterday.
Gunvor, Chevron Corp., BP Plc, Total SA and Hess Corp.’s Hetco sold the Eurobob grade, to which ethanol is added to make finished fuel. Trafigura Beheer BV, OAO Lukoil’s Litasco unit, Vitol Group, Royal Dutch Shell Plc and Cargill Inc. bought barges, which usually trade in lots of 1,000 and 2,000 tons.
Gasoil for January delivery fell $1.25, or 0.1 percent, to $940 a ton as of 1:24 p.m. London time. The February contract was at a $1 discount to the front month, after closing yesterday in backwardation, a structure that signals near-term scarcity of supply or rising demand.
The market had traded in contango, where near-term supplies are cheaper than later-dated deliveries, for most of the previous 28 days.
Gasoil’s crack, or premium to Brent, fell to $16.37 a barrel versus $16.44 as of 4:30 p.m. yesterday. Brent fell 48 cents to $109.72 a barrel on the ICE exchange.
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