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Euro oil swaps weaker on futures, jet diffs lower

LONDON: European oil swaps were weaker on both outrights and distillate premiums on Monday, with a continuing bearish tone on futures markets and better availability of diesel and jet fuel driving the losses.

Jet fuel paper was heard actively discussed in March, with trades heard done in that period at $35, $34.75 and $34.50 over IPE gas oil before discussion settled down in the $34-$35 range.

January jet was assessed at $41-$3 and February at $37-$37.50, indicating a decline of around $1 in the front months.

Diesel cargoes also edged lower, with January notionally 50 cents down on offers at $25 over IPE gas oil. Bids were extremely scarce.

Gas oil crack spreads were a tad lower at $3.55-$3.65 a barrel in the first quarter and $3.10-$3.20 in the second, brokers said.

Gasoline barges fell by $6-$7 in January at $221-$222, and by about $5 in February to $222, but second quarter crack values were a touch firmer in the $5.95-$6.10 a barrel range.

Naphtha cargo swaps recovered some of the market's earlier losses, talking by mid-session about $1 down in January at $221-$222. February was viewed $2-$3 lower at $214-$215.

Fuel oil barge paper fell by about $1.50-$2 a tonne to discuss in the $118.50-$119 range in January, with February pegged around $117.

Brent CFDs lost two or three cents a barrel to talk at Feb Brent -48/-43 cents in this week's dates, traders said._Reuters