LONDON: Gasoline refining margins in northwest Europe climbed on Tuesday as industrial action cut output at French refineries and as exports to the US from northwest Europe rose.
A nationwide strike against a French government labour law reform has cut output at Total's refineries in France, a CGT Union official said on Tuesday, but the extent of the output reduction is not yet clear. Gasoline cracks were already benefiting from growing exports to the US East Coast.
Traders said at least four tankers were booked on the route last Friday alone.
The rise in exports to the US is likely linked to a reduction in flows of the motor fuel from northwest Europe to Nigeria.
"It's difficult to tell if this is a European push or a US pull as Europe is moving less barrels to West Africa," one trader said.
Nigeria's continued difficulties to pay for imports has led to a huge buildup in tankers outside its ports.
GASOLINE
Gunvor sold to Shell one barge of benchmark Eurobob gasoline in the afternoon trading window at $505 a tonne fob ARA, up from trade on Monday at $500.
Some 19,000 tonnes of eurobob barges traded throughout the day at $503-$505 a tonne fob Amsterdam-Rotterdam, up from $500 a tonne the previous day.
Koch sold one barge of premium unleaded gasoline to Total at $525 a tonne fob ARA, up slightly from trades on Monday at $521-$523.
The June swap stood at $523 a tonne at the close, up slightly from $521.50.
Gasoline barge refining margins rose slightly to $11.06 a barrel from $10.85 the previous day.
Brent crude oil futures were up 43 cents at $49.40 a barrel at 1555 GMT, their highest in 7 months.
US June RBOB gasoline was up 1.67 percent at $1.6332 a gallon.
The US gasoline crack stood at $20.31 a barrel, down slightly from $20.55.
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