Brent stable Tuesday, gasoline gaining

Brent was stable Tuesday, edging a few cents higher in the afternoon, but the crude future traded in a narrow range over the day as the market still waited on OPEC's production call for April.

Gasoline and light ends were higher.

Analysts are expecting to see the cartel largely roll over this month's production cuts, but the rally in the dollar index since March 22 and the third wave of Covid-19 is keeping a lid on enthusiasm.

Meanwhile, the Suez Canal reopened to traffic.  

May and June Brent were almost flat as the front month heads to expiry at the end of the month, but the rest of the curve remains in wide backwardation, with 56cts/b between June and July contracts.

June Brent was trading at $64.27/b by 16.30pm UK time, up just 27 cts/b from the same time Monday, but the intraday low of $63.50/b was up 49 cts/b from yesterday.

April and May Low Sulfur Gasoil contracts followed crude and settled $1.25 and $1.50/mt respectively higher than Monday.

Products

Eurobob E10 barges led the gasoline complex, with a rise of $8/mt, compared to a gains of $2.5/mt for E5 Eurobob and $3//mt for premium unleaded barges in AR.

Naphtha cargoes posted a solid gain of $6.25/mt, improving its crack value, and following on the coat tails of a jump in propane prices.

The diesel and gasoil complex was little changed, posting modest $1/mt to $2.25/mt gains.

The spread of jet barges over cargoes widened, with sellers asking for premiums to sell product in tank.

The spread between high sulfur fuel oil and marine fuel (0.5% sulfur) barges widened $1.50/mt to $97.50/mt.