Vitol Sells European Naphtha; Diesel Barges Gain: Oil Products

European naphtha declined as Vitol Group sold two cargoes, bringing its total in the past two sessions to six lots.

Diesel barges gained as Trafigura Beheer BV and Gunvor Group Ltd. bought. Gasoil rose for the first time in three days on the ICE Futures Europe exchange in London.

Light Products

Naphtha traded at $929 and $933 a metric ton, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window which showed Trafigura and Royal Dutch Shell Plc as buyers. Deals were done Jan. 4 at $932 to $934 a ton.

Vitol bought 17 naphtha lots in the last week of December, data compiled by Bloomberg show.

Naphtha’s crack, or discount to Brent crude, was unchanged at $6.20 a barrel as of 2:14 p.m. local time, according to data from PVM Oil Associates Ltd., a broker in London.

Gasoline barges traded from $970 to $981.50 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 $967 to $978 on Jan. 4.

Chevron, Vitol, Gunvor and Total SA sold barges of the Eurobob grade, to which ethanol is added to make finished fuel. Trafigura, Shell and Gunvor bought barges that typically comprise 1,000 to 2,000 tons.

Gasoline’s crack, or premium to Brent crude, rose to $6.76 a barrel, compared with $6.66 on Jan. 4, according to PVM data.

Middle Distillates

Diesel barges rose to trade at $20 to $21 a ton more than January gasoil versus plus $20 in the previous session, the survey of Platts showed. BP and Argos Groep BV sold, and Vitol bought.

Heating oil barges traded from a $1 discount to January gasoil to parity to the marker as Mercuria Energy Trading SA, Shell and Mocoh SA bought from Vitol and Gunvor. That compares with a discount of $1 on Jan. 4.

Gasoil for January delivery rose $8.25, or 0.9 percent, to $936.75 as of 5:30 p.m. London time.

The contract’s discount to February futures was $1.75 a ton, keeping the market in contango, a structure that can signal falling demand or rising supply.

Gasoil for January delivery last closed at a premium to the next-month contract on Dec. 24.

Gasoil’s crack gained to $15.03 a barrel versus $13.64 in the previous session. Brent fell 0.3 percent to $111.02 a barrel on ICE.

Hedge funds and other money managers increased bullish bets on the fuel, ICE data show.

Money managers’ net-long bets on gasoil increased to 52,985 positions in the week to Dec. 31 from 50,223 in the previous period, the data showed. It is the highest since the week ended Dec. 4.


High-sulfur fuel oil changed hands from $602.50 to $603.50 a ton, the survey of Platts showed. That compares with $601 to $602.50 on Jan. 4. The low-sulfur grade traded at $624 to $625.

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