- Member Benefits
- Manage your personalised Watchlist.
- Set up an online Virtual Portfolio.
- Participate in Share Chat.
- See more trades and director dealings.
- Play the Fantasy Share Trading Game.
Share:
HomeShare PricesShare ChatFinance NewsSharecast NewsRegulatory NewsBlogsLive PricesShares BookshopFinance ToolsMembers
Latest Share Chat
Finance & Stock Market News
Europe Distillates-Jet fuel eases
Mon, 20th Aug 2012 19:00
LONDON, Aug 20 (Reuters) - Premiums on jet fuel cargoes over
ICE gasoil futures weakened by o
while most other distillate prices were steady.
Jet fuel prices spiked last week on tight Asian supplies and
increased demand from the United States, which could not all be
met by Asia. The U.S. sought to cover a supply shortfall after a
fire shut a crude unit at California's second-largest refinery.
European traders have booked multiple arbitrage cargoes for
shipping across the Atlantic, one trader said, but the initial
hype seemed to have calmed.
The diesel and gasoil markets drifted sideways after most
buyers in the region had already covered needs in advance of the
August holiday period, another trader said.
Levels are expected to remain underpinned, with expectations
for greater demand for the winter season and from North Africa.
Egypt tendered last week for 18 cargoes of gasoil for
delivery in the fourth quarter to Mediterranean ports.
Once trading is revived closer to September, an increase in
South Asian demand also could add strength to the European
market, which depends on arbitrage cargoes from Asia.
Indian diesel demand is set to rise and Pakistan is seeking
up to 305,000 tonnes of high sulphur gasoil for delivery over
September to December.
'If Indian monsoon rains remain at lower-than-average levels
and the country continues to struggle with power outages, Indian
diesel demand will likely continue its path of massive
year-on-year growth in the coming months, which will keep Asian
gasoil supported,' according to JBC Energy in an oil note.
GASOIL
* Four gasoil barges traded in the window at a discount to
September ICE gasoil futures of $4 a tonne, unchanged for a
fifth session.
* Vitol sold all the barges to Statoil and PetroIneos.
* September ICE gasoil futures were down 0.26
percent at $977.25 a tonne at 1634 GMT.
* The ICE gasoil curve was slightly backwardated
at the front of the curve, with the September/October spread
trading at 25 cents.
* The ICE gasoil crack was at $17.32 a barrel,
down slightly from $17.80 a barrel at the close on Friday.
DIESEL
* Three diesel barges traded at premiums to September ICE
gasoil of $28-$29 a tonne fob ARA, up slightly from $27-$28 a
tonne fob ARA on Friday.
* Lukoil and STR sold to Morgan Stanley and Total.
* Two barges of 50ppm diesel traded at ICE September gasoil
futures plus $14 and $15 a tonne fob ARA. STR and North Sea
Group sold to Phillips66 and DS.
* No cargoes traded. On Friday, there were bids at September
ICE gasoil futures plus $34/$46 range.
JET FUEL
* Three barges traded, with BP and Vitol selling to STR. BP
sold one at ICE September gasoil plus $78 a tonne and another at
CCM minus $3.00 a tonne. Vitol sold its barge at CCM minus
$2.00.
* No cargoes traded. Morgan Stanley bid at CCM plus $3.00
and ICE September gasoil plus $85 a tonne. Total bid at CCM flat
plus ICE September gasoil plus $82 a tonne and on another at CCM
minus $2.00 cif Northwest Europe.
* Vitol offered a cargo at CCM plus $1.00 and ICE September
gasoil futures plus $81 a tonne cif NWE.
* The bids and offers were similar to Friday's deal level of
gasoil futures plus $82 a tonne.
FUEL OIL
* Barges of low-sulphur fuel oil (LSFO) with 1 percent
sulphur content traded at $706.50 a tonne fob ARA, in line with
Friday's at $706-$709 a tonne fob ARA.
* Barges of high-sulphur fuel oil (HSFO) with 3.5 percent
sulphur traded at $641.50-$644 a tonne fob ARA, largely in line
with Friday's deals at $642.50-$645.75 a tonne.
(Reporting by Julia Payne; editing by Jane Baird)
(julia.payne@thomsonreuters.com)(+44 0207 542 1836)(Reuters Messaging: julia.payne.reuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
ICE gasoil futures weakened by o
ver $5 per tonne on Monday,
while most other distillate prices were steady.
Jet fuel prices spiked last week on tight Asian supplies and
increased demand from the United States, which could not all be
met by Asia. The U.S. sought to cover a supply shortfall after a
fire shut a crude unit at California's second-largest refinery.
European traders have booked multiple arbitrage cargoes for
shipping across the Atlantic, one trader said, but the initial
hype seemed to have calmed.
The diesel and gasoil markets drifted sideways after most
buyers in the region had already covered needs in advance of the
August holiday period, another trader said.
Levels are expected to remain underpinned, with expectations
for greater demand for the winter season and from North Africa.
Egypt tendered last week for 18 cargoes of gasoil for
delivery in the fourth quarter to Mediterranean ports.
Once trading is revived closer to September, an increase in
South Asian demand also could add strength to the European
market, which depends on arbitrage cargoes from Asia.
Indian diesel demand is set to rise and Pakistan is seeking
up to 305,000 tonnes of high sulphur gasoil for delivery over
September to December.
'If Indian monsoon rains remain at lower-than-average levels
and the country continues to struggle with power outages, Indian
diesel demand will likely continue its path of massive
year-on-year growth in the coming months, which will keep Asian
gasoil supported,' according to JBC Energy in an oil note.
GASOIL
* Four gasoil barges traded in the window at a discount to
September ICE gasoil futures of $4 a tonne, unchanged for a
fifth session.
* Vitol sold all the barges to Statoil and PetroIneos.
* September ICE gasoil futures were down 0.26
percent at $977.25 a tonne at 1634 GMT.
* The ICE gasoil curve was slightly backwardated
at the front of the curve, with the September/October spread
trading at 25 cents.
* The ICE gasoil crack was at $17.32 a barrel,
down slightly from $17.80 a barrel at the close on Friday.
DIESEL
* Three diesel barges traded at premiums to September ICE
gasoil of $28-$29 a tonne fob ARA, up slightly from $27-$28 a
tonne fob ARA on Friday.
* Lukoil and STR sold to Morgan Stanley and Total.
* Two barges of 50ppm diesel traded at ICE September gasoil
futures plus $14 and $15 a tonne fob ARA. STR and North Sea
Group sold to Phillips66 and DS.
* No cargoes traded. On Friday, there were bids at September
ICE gasoil futures plus $34/$46 range.
JET FUEL
* Three barges traded, with BP and Vitol selling to STR. BP
sold one at ICE September gasoil plus $78 a tonne and another at
CCM minus $3.00 a tonne. Vitol sold its barge at CCM minus
$2.00.
* No cargoes traded. Morgan Stanley bid at CCM plus $3.00
and ICE September gasoil plus $85 a tonne. Total bid at CCM flat
plus ICE September gasoil plus $82 a tonne and on another at CCM
minus $2.00 cif Northwest Europe.
* Vitol offered a cargo at CCM plus $1.00 and ICE September
gasoil futures plus $81 a tonne cif NWE.
* The bids and offers were similar to Friday's deal level of
gasoil futures plus $82 a tonne.
FUEL OIL
* Barges of low-sulphur fuel oil (LSFO) with 1 percent
sulphur content traded at $706.50 a tonne fob ARA, in line with
Friday's at $706-$709 a tonne fob ARA.
* Barges of high-sulphur fuel oil (HSFO) with 3.5 percent
sulphur traded at $641.50-$644 a tonne fob ARA, largely in line
with Friday's deals at $642.50-$645.75 a tonne.
(Reporting by Julia Payne; editing by Jane Baird)
(julia.payne@thomsonreuters.com)(+44 0207 542 1836)(Reuters Messaging: julia.payne.reuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
