Brent consolidates gains, HSFO rallies

Brent consolidated Wednesday's gains when the closed at their highest since March 17, with the front month contract 25 cts/b higher at 16.30 UK time Thursday than yesterday.

Bulls were lifted yesterday by the Information Energy Administration upping its global oil demand forecast for this year and the US Energy Information Administration releasing a bullish set of of weekly oil statistics, with crude stocks dropping 5.9 million barrels.

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Gasoline prices were a mixed bag. Eurobob E5 barge prices in ARA were set by two early morning trades at $634/mt, up a hefty $9.50/mt from Wednesday as the market caught up wth the rally in the US, but there was no further trade. The market remains in mild contango, trading $2/mt below May paper. But premium unleaded barges at 16.30pm UK time were $2.25/mt lower than yesterday.

Naphtha cargo prices into north Europe gained $4.75/mt, outstripping crude to lift its crack value.

The diesel market continued to take direction from crude, with small single digit $/mt rises amid thin liquidity. Gasoil barge prices were flat, and the differentials softened versus Low Sulfur Gasoil futures.

Jet barge prices in FARAG remained slightly below cargo prices into Rotterdam, and Le Havre, and refining margins remained below diesel.

High sulfur fuel oil barge prices in ARA jumped higher, gaining $6.25/m, to lift crack values.