Europe Gasoline/Naphtha-Cracks lower on slower exports

LONDON: Gasoline refining margins edged lower on Monday as overseas demand slowed.

Overseas demand has significantly slowed down in recent weeks, particularly for cargoes heading to the US East Coast.

Several cargoes were booked to go to West Africa, according to shipping data.

Several tankers carrying gasoline that had waited outside the ARA hub last week have discharged over the weekend, according to shipping data.

Those include Grazia, STI Hammersmith, STI Milwaukee and STI Tribeca.

Weak overseas buying particularly from US East Coast buyers after a sharp rise in stocks there last week were keeping gasoline barge margins in northwest Europe at bay.

ARA gasoline were little changed in the past week at 869,000 tonnes, according to Dutch consultancy PJK International.

The naphtha market remained supported by buying interest from the Far East, traders said.  GASOLINE

Gunvor sold to Varo a barge of eurobob gasoline at $598 a tonne fob ARA, up from $594 a tonne the previous day.

Some 6,000 tonnes traded elsewhere at $592-$597 a tonne fob Amsterdam-Rotterdam, up from $589-$589.50 a tonne the previous day. Total and BP sold to Gunvor.

Shell sold to Gunvor two barges of premium unleaded gasoline at $609 a tonne fob ARA, up from $605-$606 a tonne.

The January swap stood at $596.50 a tonne at the close, up $3 a tonne.

The benchmark EBOB gasoline refining margin was edged lower to $6.09 a barrel from $6.3 a barrel at the previous close.

Brent crude futures rose by $1.20 a barrel to $64.60 a barrel by 1650 GMT.

US front-month RBOB gasoline futures were up 0.75 percent at $1.7293 a gallon.

The RBOB crack versus US crude was up 0.23 percent at $14.78 a barrel.

NAPHTHA

Two cargoes traded. Glencore sold one to SK at $582.50 a tonne cif NWE and BP sold to Vilma one cargo at $581 a tonne cif NWE. That compared with Friday's trade of $580.50 a tonne.