European gasoline margins fall as ARA stocks rise

Gasoline refining margins in northwest Europe fell on Thursday as stocks in the ARA hub grew, but a potential pick up in exports to the United States gave margins a floor. Stocks of oil products in independently held storage in the Amsterdam-Rotterdam-Antwerp (ARA) hub climbed to a seven-month high in the week to Thursday, data from Dutch consultancy PJK International showed.
Gasoline stocks were up 2.6 percent at 1.16 million tonnes. A large draw of 6.56 million barrels in US gasoline stocks last week is expected to encourage transatlantic exports from Europe. Reuters shipping data also showed demand for shipping the motor fuel to West Africa and demand for Europe's blending components in China.
European February gasoline stocks rose 0.3 percent month-on-month in February to nearly 123 million barrels, according to data from industry monitor Euroilstock. The gain came amid a slowdown in exports to the United States, where stocks had been high.
Indonesia's Trans-Pacific Petrochemical Indotama has cut runs at its 100,000 barrel-per-day condensate splitter as maintenance was extended at other units at the site into the second-half of March, three industry sources with knowledge of the matter said on Thursday.
Petrochemicals firm Ineos said on Thursday it had signed an agreement with Oiltanking Antwerp Gas Terminal (OTAGT) to build a 135,000-cubic meter butane tank in Antwerp, Belgium, making it the largest LPG storage tank in Europe.
The import terminal will be operational in 2019 and will supply butane into Ineos' naphtha crackers at Koln, Germany, and potentially supply the company's plant in Lavera, France, at a later stage.
No barges of benchmark European gasoline traded in the afternoon window. Discussions in the late afternoon emerged at $493-$498 a tonne fob ARA. Earlier in the day 10,000 tonnes traded at $500-$510 a tonne fob Amsterdam-Rotterdam, down from $524-527 a tonne on Wednesday. CCI sold a barge of premium unleaded gasoline to Total at $508 a tonne fob ARA. This compared with an offer at $539 a tonne on Wednesday.
The April swap traded at about $532 a tonne at the close, down from $557 a tonne. Brent crude futures fell $1.14 to $51.97 a barrel by 1646 GMT. Gasoline barge refining margins fell to $9.79 a barrel from $10.832 a barrel a day earlier.