Gasoline Gains to 14-Week High; ICE Gasoil Falls: Oil Products
European gasoline advanced to the highest level in 14 weeks as BP Plc and Royal Dutch Shell Plc bought on the barge market.
Gasoil dropped from the highest in almost three months on the ICE Futures Europe exchange in London.
PKN Orlen SA plans to halt diesel units at its Plock refinery in the second and third quarters, the company said in its 2013 maintenance schedule.
Gasoline in the Amsterdam-Rotterdam-Antwerp oil hub traded from $1,006 to $1,008 a metric ton, according to a Bloomberg survey of traders and brokers monitoring the Argus Bulletin Board. That’s the highest since Oct. 17, data compiled by Bloomberg show.
Gunvor Group Ltd., Chevron Corp., Vitol Group and Total SA sold the Eurobob grade, to which ethanol is added before being sold at the pump. Cargill Inc. and Argos Groep BV also bought barges, which usually trade in lots of 1,000 and 2,000 tons.
Gasoline’s crack, or premium to Brent, rose 1 cent to $8.96 a barrel as of 10:55 a.m. London time, according to PVM Oil Associates Ltd., a crude and refined products broker. That’s the highest since Oct. 11.
Naphtha’s crack, or discount to Brent, widened for the first time in five sessions, to $5.90 barrel, according to PVM data. It was at $5.84 yesterday.
Gasoil for February delivery fell $1.25, or 0.1 percent, to $968.50 a ton as of 1:19 p.m. on the ICE exchange in London. February futures traded at a premium of $7.75 a ton to the March contract, compared with $9 yesterday, as the market trades for a second week in backwardation. This market structure can signal rising near-term consumption or reduced supply.
Gasoil’s crack narrowed to $16.41 versus $16.96 yesterday. Brent advanced 0.1 percent to $112.53 a barrel.
The outages at PKN Orlen’s Plock refinery are scheduled to last more than 30 days each, the company said on its website.
PKN Orlen plans to halt a reformer in the Mazeikiu refinery in Lithuania in March for about 45 days, and a diesel unit of the Kralupy refinery in the Czech Republic in September for more than 30 days, the company said.
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