European Gasoline Crack Rises; ICE Gasoil Surges: Oil Products
Gasoil for January delivery rose as much as 1.9 percent, the largest gain in more than two weeks, on the ICE Futures Europe exchange in London as Brent rallied.
Gasoline’s crack, a measure of refining profit, widened to $6.50 a barrel as of 10:44 a.m. local time, according to data from PVM Oil Associates Ltd., a crude and products broker in London. That’s the most since Oct. 16 and is up from $5.23 a barrel on Dec. 31.
No barges of gasoline changed hands in the Amsterdam- Rotterdam-Antwerp area. The fuel last traded at $946 a ton on Dec. 31, according to a survey of traders and brokers monitoring the Argus Bulletin Board. That compared with deals from $953 to $961 in the previous session.
Naphtha’s crack, or discount to Brent, widened for the fourth session to $5.19 a barrel, PVM data showed. It was at $4.77 the previous session.
January gasoil rose as much as $18, or 1.9 percent, to $945 a ton on the ICE exchange, which the biggest gain since Dec. 13. It traded at $944.25 as of 1 p.m. London time. The February contract was at a 50 cent premium, or contango, to the front month after settling at parity on Dec. 31.
Gasoil’s crack shrank to $14.62 a barrel versus $14.83 as of 12:30 p.m. on Dec. 31. Brent advanced $1.12 to $112.25 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.
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