LONDON: Gasoline prompt crack spreads in northwest Europe held around eight-month highs on Monday, boosted by the switch to pricier summer blends of the motor fuel and by refinery maintenance.
The barge market has fully switched to summer grades, with the last of the winter grades trading on Friday at steep discounts to summer.
"Summer spec is more expensive, by about $40 a tonne," said one gasoline swaps trader.
Supplies in the region were expected to tighten in April as refinery maintenance increases and demand for gasoline from the United States tends to rise ahead of the summer, traders said.
Around 1.5 million barrels-per-day of refining capacity, more than 10 percent of the region's capacity, is expected to go off line in April for maintenance.
In the Mediterranean, no cargoes were traded in the price assessment window. Last week's Algerian tender boosted demand and Turkey's Tupras recently sold two cargoes, one of gasoline, aromatics and high sulphur fuel, and another of reformates, a gasoline blending component, traders said.
"That's why you asee Mediterranean/North spread at minus $7.5 now in April," said one trader. "But I wouldn't call the market tight to be honest but balanced."
In the naphtha market, Venezuela's state-run PDVSA is seeking to buy one 250,000 barrel cargo of catalytic naphtha to be received April 28-30 at any of its ports, according to an invitation seen by Reuters on Monday.
GASOLINE:
No barges of benchmark Eurobob gasoline traded in the Platts price assessment window as there were no bids or offers. The April swap traded at $986.50 a tonne at the close, down from $993.25 a tonne on Friday.
Three barges of summer gasoline traded outside the window at $988-$996 a tonne fob ARA, down from $998 a tonne on Friday. Total sold to Gunvor, Trafigura sold to BP and Mercuria sold to Morgan Stanley.
In the Platts price assessment window, two barges of summer premium unleaded gasoline traded at $1,000 and $1,001 a tonne fob ARA, down from $1,008 and $1,012 a tonne on Friday. Gunvor and Vitol both sold to Noble.
By 1657 GMT, Eurobob's crack to dated Brent was down slightly at $11.59 a barrel, compared to $11.76 a barrel in the previous session.
Brent crude oil futures were down 35 cents at $107.72 a barrel at 1658 GMT. US RBOB gasoline futures in New York were down 1.1 percent at $2.9051 a gallon, and the prompt crack was at $20.78 a barrel.
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