Brent gains but mixed response in European oil products

Crude ticked higher Tuesday, but there was a lacklustre response in the European oil product complex, with the exception of gasoline prices in the Mediterranean.  

Healthy economic data from the U.S. and China lifted June Brent through the day.

The front month crude future started trade at $62.32/bbl, gained to $63.17/bbl by the 16.30 Singapore close, and then climbed to $63.47/bbl by 16.30 UK time, up 54 cts/bbl from the 12.30 UK time close on Thursday before the Easter holiday break.  

China's services sector picked up speed in March as firms hired more workers and business optimism surged, a private sector survey revealed.

A survey from the Institute for Supply Management on Monday showed activity in the US services industry reached its highest level on record in March amid growth in new orders, following on from last week's jobs report that showed 916,000 more Americans were added to payrolls in March.

But there were only small gains in Low Sulfur Gasoil futures than Brent, where the April contract settled at $498.50/mt, up $2/mt, or 27 cts/bbl from its 12.30 UK Thursday close.

Products

Gasoline prices were very mixed. Eurobob E5 gasoline barges in ARA averaged $2.50/mt lower, based on an average of trades over the day, but E10 barges were up $4.75/mt, and premium unleaded barges were up $5/mt. However, there was a surge in premium gasoline prices in the Mediterranean, up a sharp $27.50/my, and there was also a $10/mt gain in premium unleaded gasoline cargoes into the UK.

Naphtha prices followed crude with gains of $3.50/mt.

Diesel barge and cargo prices in both north Europe and the Mediterranean largely followed the rise in distillate futures.

Jet barges in and around the port of Rotterdam traded at $20/mt above April Low Sulfur Gasoil, and $18/mt above May Low Sulfur Gasoil.

In the marine fuel market, high sulfur fuel oil barges were little changed, softening cracks values, while there were strong gains in marine fuel 0.5%.