Markets

Europe Gasoline/Naphtha-Cracks weaken as Hurricane Irma looms

Published September 8, 2017 Updated September 8, 2017 04:00pm

Gasoline exports from the region rose sharply this week after a wave of cargo buying that followed Hurricane Harvey last week. Around 700,000 tonnes of gasoline and blending components were set to leave on the route, traders said.

Exports to the US East Coast have nevertheless slowed in recent days as traders wait to see the impact of Hurricane Irma, which is set to make landfall in Florida.

Irma is forecast to hit the densely populated Miami region and severely damage oil infrastructure, according to Reuters weather analysts.

Refiners including Exxon Mobil Corp XOM.N and Motiva Enterprises purchased fuel on Thursday to compensate for lost output from plants shut since Hurricane Harvey hit the US Gulf Coast last month, traders said.

Oil and petrochemical plants along the US Gulf Coast intend to go ahead with plans for near record spending on expansion next year, despite Hurricane Harvey driving up labour costs and slowing work, experts said.

GASOLINE

No barges traded in the afternoon window. Bids and offers came in at $596-$615 a tonne fob ARA.

Elsewhere, 28,000 tonnes traded at $600-$615 a tonne fob Amsterdam-Rotterdam, compared with $616-$618 a tonne on Thursday. Shell and Total sold to BP and Gunvor.

There were no trades of premium unleaded gasoline in the afternoon window.

In the Mediterranean, BB Energy bid for a cargo at $587 a tonne fob Med.

The October swap stood at $542 a tonne at the close, unchanged for third session.

The benchmark EBOB gasoline refining margin fell to $17.4 a barrel from $18.74 a barrel at the close.

Brent crude futures were 28 cents lower at $54.21 a barrel by 1550 GMT.

US front-month RBOB gasoline futures were little changed at 1.6622 a gallon.

The RBOB crack versus US crude stood at $21.6 a barrel, up 4.4 percent.

NAPHTHA

No cargoes traded.

 

Copyright Reuters, 2017