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Europe Oil Products-Firmer on maintenance, bullish data
September 26, 2012 / 4:21 PM / 5 years ago

Europe Oil Products-Firmer on maintenance, bullish data

LONDON, Sept 26 (Reuters) - Gasoline barge prices and gasoil
barge differentials firmed in northwest Europe on Wednesday as
Europe hit its peak seasonal maintenance period and product
inventories in the United States unexpectedly fell.
    Maintenance and unexpected outages are keeping Europe's oil
products markets tight, with low inventories pushing ICE gasoil
futures curve into a strong $6.25 a tonne backwardation at the
front end.
    Valero's 270,000 barrels-per-day Pembroke refinery in Wales
has just entered seasonal maintenance, which is expected to last
up to eight weeks. 
    And in the United States, the Energy Information
Administration said that U.S. gasoline inventories fell by
481,000 barrels, compared with a consensus forecast for a
200,000 barrel build. 
    U.S. distillate stocks also fell by 482,000 barrels compared
with expectations for an increase of 800,000 barrels. 
    Citi analysts said in a report distributed late on Tuesday
that middle distillates should continue to perform in the coming
month. "The drop in global refining throughput in October should
keep things bullish for products at least until the maintenance
period is over," they said.
    Citi noted that refiners had been running hard over the last
few months, but products stocks have struggled to build. "This
has partly been because of surprisingly robust demand,
surprising given the dour economic outlook," they said.
    However, refiners do not expect strong product margins to
last, with weak demand expected to offset the low inventory
picture over the medium term. 
   
    GASOLINE 
    * One barge of benchmark Eurobob traded in the window at
$1,076 a tonne fob ARA, up from Tuesday's trade at $1,064 a
tonne. Gunvor sold the barge to Neste.
    * Some 7,000 barges of winter grade gasoline traded in the
morning, at $1,070-$1,079 a tonne fob ARA. The early trades came
at premiums to the October swap of $24-$35 a tonne.
    * Total sold the bulk of the barges with Trafigura also on
the sell side. Buyers included Shell, Gunvor and Noble.  
    * At 1548 GMT Eurobob's crack to dated Brent BFO- was up
at around $19.05 a barrel from around $17.17 a barrel on
Tuesday. 
    * Seven barges of premium unleaded gasoline traded at
$1,092-$1,098 a tonne fob ARA, up from $1,090-$1,091 a tonne on
Tuesday.
    * Gunvor, Statoil and Trafigura were on the sell side whilst
Total, Litasco and Phillips 66 were buyers.
    * At 1603 GMT ICE Brent crude futures were down
$1.17 at $109.28 a barrel. 
    * October U.S. RBOB gasoline futures were up 2.25
percent at $3.0340 a gallon, in reaction to the bullish
inventories data.
    * RBOB's crack to U.S. crude futures RB-CL1=R was at
$29.94 a barrel, up from $25.96 a barrel around the same time on
Tuesday.
    
    NAPHTHA NAF-C-NWE
    * Gunvor sold a naphtha cargo to Vitol for October 10-14
loading dates at $929 a tonne cif NWE. This was down from
Tuesday's trades at $937-$939 a tonne cif NWE. 
    * The prompt naphtha crack improved to around minus $4.59 a
barrel, according to Reuters' calculations, from around minus
$5.65 a barrel on Tuesday.
    * Taiwan's Formosa Petrochemical Corp has cancelled a tender
to buy first-half November naphtha after a fire hit a unit
operated by its sister company Nan Ya Plastics. 
    * About 350,000 tonnes of naphtha are expected to go to Asia
in October, down from 800,000 tonnes this month. 
 
    GASOIL 
    * Two 0.1 percent gasoil barges traded at discounts to
October ICE gasoil futures of $2 a tonne fob ARA, firming from
Tuesday's discounts of $3-$4 a tonne.
    * Gunvor sold a barge to Morgan Stanley and Shell sold one
to Vitol.
    * Two barges of 50 ppm gasoil traded at premiums to October
ICE gasoil futures of $34-$35 a tonne fob ARA, in line with
Tuesday's levels. Shell bought the barges from Litasco and AIC. 
    * At 1605 GMT, October ICE gasoil futures were down
1.3 percent at $964.50 a tonne. 
    * The ICE gasoil crack LGO-LCO1=R was at $19.35 a barrel,
down slightly from $19.52 a barrel on Tuesday.
    * The October/November backwardation LGO-1=R was at
around$6.25 a tonne, unchanged from the previous session.

    DIESEL ULSD10-BD-ARA
    * Three barges of intermediate quality diesel traded at
premiums to October ICE gasoil futures of $36-$37 a tonne fob
ARA, a tighter range than Tuesday's $35-$38 a tonne.
    * Shell bought the barges from Unipec, North Sea Group and
Chevron.
            
    JET FUEL JET-BD-ARA
    * Two jet fuel barges traded at a premium to October ICE
gasoil futures of $81 a tonne fob ARA. Vitol sold both the
barges to Shell.
    * No cargoes traded but bids and offers came in the $74-$80
a tonne cif NWE range.
                  
    FUEL OIL 
    * Barges of low-sulphur fuel oil (LSFO) with 1 percent
sulphur content traded at $665 a tonne fob ARA, down from
Tuesday's price talk at $682.50 a tonne.
    * Barges of high-sulphur fuel oil (HSFO) with 3.5 percent
sulphur content traded at $615.50-$621 a tonne fob ARA, down
from $633-$638.50 a tonne on Tuesday.

 (Reporting by Claire Milhench, editing by William Hardy)

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