Oil products diverge despite little change in oil futures

London (Quantum Commodity Intelligence) - European oil futures diverged slightly Thursday, and there was a mixed bag of moves in oil products.

Front month Brent was trading at $64.49/b by 16.30 UK time, down 36 cts/b from the same time Wednesday, but front month Low Sulfur Gasoil futures was trading at $521.75/mt, up $1.25/mt (17 cts/b).

Products

Lightends was very mixed.

Naphtha cargo prices saw small gains of $1.25/mt (14cts/b), but were overshadowed by a jump in propane cargo prices of $18.25/mt. The propane versus naphtha paper for May jumped from a discount of $104/mt on Wednesday to a discount of $88/mt Thursday to lift the LPG value. The May paper for propane Far East Index versus Naphtha Japan rose from minus $57.25/mt to minus $46.25/mt.

Gasoline prices were lower, but there were huge differences between the grades, as the market corrected from yesterday. Premium unleaded barges dropped just $1/mt, marked at 16.30 UK time compared to yesterday, but the all-day price assessments of Eurobob E5 dropped $8.75/mt, and E10 dropped $28/mt.

Jet barge and cargo prices were up $2.75/mt (35cts/b). Jet barges, loading in FARAG, traded at $20/mt above front month Low Sulfur Gasoil futures.

Diesel and gasoil saw higher gains than European distillate futures. Diesel barges traded at $1.50/mt below front month Low Sulfur Gasoil futures.

High sulfur fuel oil and marine fuel (0.5% sulfur) barges in ARA saw slight losses amid weaker Brent, but there was a sharp drop in FOB low sulfur fuel oil cargo paper, dragging the spot assessment down $8/mt.