Europe Gasoline Stronger, Exports Brisk

Posted by Eric Haun
Friday, April 04, 2014

Gasoline barge prices in northwest Europe rose on Friday, boosted by brisk cargo exports as demand builds ahead of the peak summer driving season.

"Things are perking up," said one trader.

"Big slugs of reformate are heading to Asia again. There is good demand in the east still. West Africa blends are still taking place... Latin America is importing quite a bit in general."

Reuters shipping data showed a flurry of new vessels booked to carry gasoline or its components, which include reformates.

Cargill booked a tanker to carry gasoline across the Atlantic and Valero booked another for the east coast of Canada, the data showed. BP fixed two vessels to carry gasoline to West Africa and PMI fixed three tankers to Mexico.

The fixtures come as gasoline stocks independently held at the Amsterdam-Rotterdam-Antwerp hub fell by 5 percent this week to 1.078 million tonnes, according to data from Pieter Kulsen. The Dutch oil consultant attributed the draw to increased demand with the switch to summer blends of gasoline this month.

Cargoes had already departed to the United States and West Africa during the week.

Wednesday's weekly data from the U.S. Energy Information Administration was also bullish; gasoline stocks on the U.S. East Coast, a major export market for European gasoline, fell by 2 million barrels.

In the European barge market, low water levels prevented vessels from sailing fully loaded on the Rhine and Danube rivers in Germany, increasing transport costs for cargo owners, traders said. The Rhine is an important shipping route for commodities including oil products.

Naphtha received some support from Asia, where there is demand for European cargoes due to refinery maintenance, traders said.    

The East-West arbitrage is considered open at around $15 a tonne for May and $16 a tonne for June, but traders in Asia said on Friday they were not expecting enough cargoes to arrive.  

About 900,000 to 1 million tonnes of European/Mediterranean naphtha are expected to arrive in Asia in May, similar to March volumes which were at a five-month low, they said. A record 1.7 million tonnes arrived in Asia in January.

Gasoline
Gunvor sold one barge of benchmark Eurobob to Total in the Platts price assessment window at $986 a tonne fob ARA.   

Outside the window, gasoline traded at $979-$988 a tonne fob ARA, up from at $966-$972 a tonne on Thursday. 

By the market close, the May swap was trading at around $986 a tonne, up from $970.50 a tonne on Thursday.   

Two barges of premium unleaded gasoline traded at $1,000-$1,002 a tonne fob ARA, up from $982-$985 a tonne on Thursday. Argos sold to Vitol and Litasco to Total.

By 1715 GMT, Eurobob's crack to dated Brent was at $10.744 a barrel, up from around $10.10 a barrel on Thursday.

Brent crude oil futures were up 49 cents at $106.64 a barrel at 1707 GMT.

U.S. RBOB gasoline futures in New York were up 0.63 percent at $2.9300 a gallon, and the prompt crack was firmer at $21.99 a barrel.

Naphtha
Two cargoes of naphtha traded on Friday. Vitol sold a cargo to Gunvor at $920.50 a tonne cif NWE. Noble sold to Total at $921 a tonne cif NWE. That compared to a price of about $910 a tonne on Thursday.

The naphtha prompt crack was a little stronger at around minus $3.18 a barrel, compared to minus $3.55 a barrel on Thursday.

(Editing by David Evans)

Maritime Reporter May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Stena Sonangol Suezmax Pool Rings in 10 Years

Stena Sonangol Suezmax Pool celebrates 10 years of collaboration and trading.   The 10th anniversary celebrations took place in London on May 20. Today on May 26 it is Houston’s turn and,

Bahri Inks Contracts with Hyundai to Build 5 VLCCs

The National Shipping Co. of Saudi Arabia (Bahri) signed contracts on Thursday with Hyundai Samho Heavy Industries (HSHI) to build five very large crude carriers (VLCCs),

Red Tape, Industrial Relations Could Stifle LNG Potential

Australia could develop the world’s most technologically advanced LNG industry, according to a report by Accenture. But if industry is to reach its potential

Finance

Former Petrobras Exec Sentenced to 5 Years Jail

A Brazilian judge sentenced a former international director at state-run oil firm Petroleo Brasileiro SA to five years in prison for money laundering on Tuesday,

Rising from the Ashes

The federal government is now taking steps to reverse its 2010 decision to terminate the nation’s LORAN program. The LORAN program was initiated during World War II,

Training: Cutting Costs While Remaining Cutting Edge

Businesses are operating in tough economic times, with budgets being significantly cut during the current industry downturn. Unfortunately, when lowering costs is a key priority,

Energy

Former Petrobras Exec Sentenced to 5 Years Jail

A Brazilian judge sentenced a former international director at state-run oil firm Petroleo Brasileiro SA to five years in prison for money laundering on Tuesday,

Kongsberg Technology for Johan Sverdrup Field

Kongsberg Maritime has been awarded a call-off order for delivery of the Safety and Automation System (SAS), Life Cycle Simulator and SAS Information Management

Second Sea Lion Rescued from California Oil Spill Dies at SeaWorld

A second sea lion rescued from along California's oil-fouled coastline near Santa Barbara has died at SeaWorld San Diego, where veterinarians are still caring for

Barges

Natural Gas Articulated Conduit System Patented

Elliott Bay Design Group (EBDG) announced that long-time partner Moran Towing Corporation has been granted US Patent 8,967,174 for "Articulated conduit systems

Apply Now for the MN 100

The August 2015 edition of Marine News, the leading voice in the North American workboat market, will feature 100 leaders and innovators, including workboat owners and operators,

Snarled in Traffic, Intermodal Answers Include the Water

It was just last month that the (challenged) Keefe family packed up the SUV and set out for a little bit of spring break fun, mixed in with a college visit for my son,

Logistics

CMA CGM Launches New TransAtlantic Service

The CMA CGM Group announced that it will launch a new container shipping offering between North America and North Europe at the end of May 2015. The group will

Snarled in Traffic, Intermodal Answers Include the Water

It was just last month that the (challenged) Keefe family packed up the SUV and set out for a little bit of spring break fun, mixed in with a college visit for my son,

Harnessing Offshore Wind Peaks in U.S.

For the US energy industry, 2014 will be remembered as the year when crude oil prices fell below 50$/bbl, resulting in significant realignments in the sector.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2930 sec (3 req/sec)