LONDON: Gasoline refining cracks in northwest Europe firmed on Monday, boosted by a fall in the price of crude oil while traders found a market for motor fuel components in Asia.
"A lot of gasoline is going to Asia," one trader said. "The gasoline-naphtha differential is weakening, making it difficult for blending in Europe."
One tanker carried gasoline components to China on Oct. 18 and another was fixed to carry 40,000 tonnes to China on Oct. 22, Reuters shipping data showed.
Tankers were also fixed to head across the Atlantic and to West Africa this week amid an oversupply in Europe.
European margins have been hammered by weak European demand and competition from overseas refiners which benefit from lower crude prices, more up-to-date plants and economies of scale.
Analysts say the weak margins could force refineries to extend maintenance or close down altogether.
European refinery crude intake fell by five percent in September from a month earlier to 9.843 million barrels per day as plants entered seasonal maintenance, data from industry monitor Euroilstock showed on Monday.
Crude intake was down 8.4 percent from a year earlier, the data showed.
The Grangemouth refinery, which provides most of Scotland's fuel and is crucial to pumping oil from the North Sea, remained shut and operator Ineos said it would only reopen if workers accept benefit cuts. The union said most workers would reject the Ineos offer.
GASOLINE
No barges of benchmark Eurobob gasoline traded in the Platts price assessment window for the second session running.
No barges of premium unleaded traded in the window. There was one bid at $953 a tonne cif NWE. On Friday, one barge traded at $953 a tonne fob ARA.
Some five barges traded on the Argus platform, four of them at $959 a tonne fob ARA and one at $963 a tonne fob ARA, compared to $952-$968 a tonne on Friday. Gunvor, Chevron and BP sold to Morgan Stanley, Shell and Cargill.
One cargo traded at $975 a tonne cif Tees for Oct. 21-Nov. 4 loading. Total sold to Greenergy.
The November swap was trading at around $944 a tonne fob ARA at market close, up from $940 a tonne on Friday.
Eurobob's crack to dated Brent was at around $4.827 a barrel, up from $3.724 a barrel on Friday.
Brent crude oil futures were down 28 cents at $109.66 a barrel by 1548 GMT.
US RBOB gasoline futures in New York were down 0.25 percent at $2.6665 a gallon, and the crack was at $12.30 a barrel.
NAPHTHA
Two naphtha cargoes traded at $915 a tonne cif New, up from the last cargo that traded on Thursday at $910 a tonne. BP and BASF both sold to Glencore.
The naphtha prompt crack was at minus $6.85 a barrel on Monday, according to Reuters calculations.
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