Europe oil/products: Brent rallies, HSFO cracks tumble
London (Quantum Commodity Intelligence) - European oil futures gained Monday, led by Low Sulfur Gasoil futures to extend a trend above Brent, but high sulfur fuel oil prices dipped lower and cracks tumbled.
Bunker fuel cracks in Rotterdam have been under pressure since Singapore stocks bulged to a four-year high.
But fuel oil stocks in ARA fell 11% last week, according to Insights Global data, and HSFO bunker fuel sales in Singapore in April rose to 1.1 million mt, according to the Singapore Maritime Authority.
The softness in HSFO may reflect the availability of more sour crudes on the global market as OPEC+ opens the taps.
Products
Naphtha cargo prices in north Europe gained $5/mt ($0.55/b), and its crack value versus Brent slipped lower.
Gasoline premium unleaded barges traded at $657/mt and $658/mt, gaining $7.50/mt to push crack values higher. Eurobob E5 barges traded 12,000/mt at an average of $2.75/mt below June paper. Eurobob E10 traded at an average of $2.33/mt below June paper.
Jet fuel barges traded twice at $0.5/mt below CIF cargoes, but there was also an offer at $20/mt above June Low Sulfur Gasoil futures and the market was assessed at a premium of $19.75/mt. Jet cargoes were offered at June LSG plus $22/mt, and there was a mixture of floating price bids and offers, with both Le Havre or Rotterdam arrival. Barges gained $6.75/mt ($0.85/b) and cargoes gained $7.75/mt ($0.98/b).
Low Sulfur Gasoil futures continued to extend gains above Brent, following on from Asia, and raising European middle distillate cracks. Diesel barges were bid at minus $3 and offered at minus $1/mt versus June LSG. A diesel cargo traded into Le Havre at $4.50/mt above June LSG, and in the Mediterranean, a cargo was offered into Lavera at $4/mt above June LSG.
High-sulfur fuel oil barges dipped $0.25/mt lower, trading 8,000mt at $362.75/mt, contrary to rising Brent, to send cracks tumbling lower. Earlier, Singapore HSFO 380 CST cracks also fell. Marine fuel (0.5% sulfur) traded 6,000mt at $476.50/mt, up $3/mt from Friday.
