Vitol Sells European Naphtha; Diesel Barges Drop: Oil Products

Vitol Group sold naphtha after purchasing at least 17 cargoes during the last week of December. Morgan Stanley purchased a jet fuel cargo and barge.

Diesel barges declined relative to January gasoil on the ICE Futures Europe exchange in London.

Light Products

Naphtha traded at $932 to $934 a metric ton, according to a survey of traders and brokers monitoring the Platts pricing window. Trafigura Beheer BV and BP Plc bought the fuel and compare with a deal two days ago at $950 a ton.

The number of European consignments in January to Asia rose to three vessels from two a week earlier, shipping data showed.

About 240,000 tons were scheduled to load this month, up from 160,000 tons planned last week, according to data from shipbrokers including Galbraith’s Ltd. Some fixtures are provisional and may be changed or canceled. The number of tankers loading in December was unchanged at five.

Naphtha’s crack, or discount to Brent crude, narrowed for the first time in six sessions to $5.82 a barrel as of 1:53 p.m. local time, according to data from PVM Oil Associates Ltd., a broker in London. It was $5.99 yesterday.

Statoil ASA sold a cargo of gasoline to Greenergy International Ltd. at $1,007 a ton for delivery to the Thames in England, the survey of Platts showed.

Gasoline barges traded from $967 to $978 a ton in the Amsterdam-Rotterdam-Antwerp area, according to a similar survey of the Argus bulletin board. That’s down from trades at $978 to $980 yesterday, when prices rose to the highest since Nov. 19, data compiled by Bloomberg show.

BP, Cargill Inc. and Royal Dutch Shell Plc bought the Eurobob grade, to which ethanol is added to make finished fuel. For the second day, Total and Chevron Corp. sold the barges, which typically comprise 1,000 to 2,000 tons.

Gasoline’s crack, or premium to Brent, widened 6 cents to $6.92 a barrel, the biggest spread in more than 11 weeks, PVM data showed.

Middle Distillates

Morgan Stanley bought a cargo of jet fuel from BP at a premium of $78 a ton to February gasoil, the survey of Platts showed. The bank also purchased a barge of the fuel from Statoil at $76 more than the January contract, compared with Jan. 2 trades at plus $78.

Diesel barges slid to trade at $20 a ton more than January gasoil versus plus $21 yesterday, the survey of Platts showed. Argos Groep BV and Statoil sold to Vitol and BP.

Heating oil barges traded at $1 less than January gasoil as Mercuria Energy Trading SA bought from Vitol and Gunvor Group Ltd. That compares with discounts of 50 cents to $2 yesterday. Shell bought the low-sulfur grade at a $16 premium from Argos.

Gasoil for January delivery fell as much as $15.50, or 1.7 percent, to $920.25, the lowest intraday level since Dec. 18. It was at $926 as of 5:25 p.m. London time.

The contract’s contango to February futures widened to $2.50 a ton from $1.50 yesterday.

Gasoil’s crack rose to $13.64 a barrel at 4:30 p.m. versus $13.41 the previous session. Brent fell 1.2 percent to $110.84 a barrel on ICE.


High-sulfur fuel oil changed hands from $601 to $602.50 a ton, the survey of Platts showed. That compares with $598 to $603 yesterday. OAO Lukoil’s Litasco unit was the main seller and Vitol was the most active buyer.


Oil Refineries Ltd., Israel’s largest refiner, started a new hydrocracker at its Haifa facility to produce diesel liquefied propane gas, naphtha and kerosene.

The unit is processing about 25,000 barrels a day, the company said. It cost $500 million to build over three years.

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