LONDON: Gasoline refining margins in northwest Europe rose on Wednesday above $12 a tonne, supported by gains in crude oil prices which offset relatively weak buying.
Exports from the region remained scant, with around five cargoes booked so far this week out of Europe to go to Latin America, West Africa and the US East Coast, according to Reuters shipping data.
The transatlantic arbitrage significantly dropped this summer compared to a year earlier, prompting several trading houses to shrink their gasoline desks in response to a slump in activity.
"After a decent beginning to the year, the arbitrage to the US has been mostly shut and opportunities are limited.
The paper (futures) market has been in disarray so it has been a very difficult market overall," a European gasoline trader said.
Trafigura's gasoline tanks in Amsterdam, used for blending and storing different components to produce gasoline, have been empty and idle in recent months, trading source said. Trafigura declined to comment on the tanks' usage.
GASOLINE
One barge of benchmark Eurobob gasoline traded in the afternoon price assessment window at $949 a tonne fob ARA, up from $931 a tonne on Tuesday. Vitol sold to Shell.
Ahead of the window, barges traded at $946-$954 a tonne fob ARA, compared with $946-$951 a tonne on Tuesday. They were trading at $49-$52 a tonne above the October swap.
At the close the October swap was trading at $902 a tonne, up from $894.25 a tonne.
No barges of premium unleaded gasoline traded. There were no bids or offers.
At 1643 GMT, Eurobob's crack to dated Brent was at about $12.277 a barrel, up from $11.535 a barrel.
Brent crude oil futures were up $1.65 cents at $101.99 a barrel.
US RBOB gasoline futures for October were up 2.41 percent at $2.6042 a gallon. The prompt crack was at $14.78 a barrel, up from $13.87 a barrel on Tuesday.
Four naphtha cargoes traded in the afternoon window at $872-$875 a tonne cif NWE for loading at mid and end-September, compared with Tuesday's trade at $865 a tonne. Shell sold to BASF, Glencore and Gunvor. Koch sold to Gunvor.
The prompt naphtha crack was at about minus $3.88 a barrel, down from minus $3.50 a barrel on Tuesday, according to Reuters calculations.
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