BS: Heating Oil Rises in Europe, Boosted by Cold Weather in Germany
By Rachel Graham
Feb. 10 (Bloomberg) -- Gasoil prices advanced, boosted by cold weather in Germany, Europe’s biggest market for the heating fuel.
The gasoil crack spread, or the difference between gasoil futures and Brent crude, widened to $7.115 a barrel on London’s ICE Futures Europe exchange as of 11:54 a.m. That compares with a closing premium of $5.655 a barrel yesterday.
“Demand for fuel is returning because of the weather,” Jens Dammeyer, owner of Helios Lubeoil KG, a distributor in northern Germany, said by telephone from Bremen. “Domestic stocks are falling.”
Winter demand for fuel has eaten into consumer stocks in Germany. Domestic tanks were 61 percent full at the end of December, compared with 65 percent full at the end of October, according to estimates from investment bank Calyon.
Temperatures in Germany in January were lower than usual, according to the country’s National Weather Service. Temperatures won’t rise above minus 5 degrees Celsius today in Munich and minus 7 in Berlin, according to the service.
Gasoil futures for March rose for a second day, adding $10, or 1.7 percent, to $589.50 a metric ton on the ICE Futures Europe exchange as of 10:16 a.m. local time.
Gasoil prices also rose as a U.S. industry report yesterday showed U.S. supplies of distillate fuel fell last week. The distillates category includes gasoil, diesel and jet fuel.
Distillate fuel inventories declined by 1.53 million barrels to 158.3 million, the American Petroleum Institute said. Inventory data from the U.S. Department of Energy will be released on Feb. 12.
Gasoline’s premium to Brent narrowed for a third day yesterday, weakening to $7.36 a barrel from $7.37 a barrel on Feb. 8, according to PVM Oil Associates Ltd. in London.
U.S. gasoline inventories rose last week, according to yesterday’s API report.
--Editors: Will Kennedy, Randall Hackley.
To contact the reporter on this story: Rachel Graham in London at +44-20-7073-3184 or rgraham13@bloomberg.net
To contact the editor responsible for this story: Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
