Europe Gasoline-Firm on demand despite US stock build

Wed Apr 21, 2010 10:39pm IST

LONDON, April 21 (Reuters) - Benchmark gasoline cracking
margins rose on Wednesday, firming on signs of improving demand
from West Africa, the United States and the lingering
disruptions to Europe's airspace from the volcanic ash cloud.

But prices pared gains in late trade after the U.S. Energy
Information Administration reported a larger-than-expected rise
in stocks of the motor fuel. [EIA/S]

Gasoline stocks in Europe's key export market were up by 3.6
million barrels last week on the back of higher refinery run
rates. Analyst had forecast a far smaller 400,000 barrel build.

Crack spreads edged up $9.40 a barrel from $9.00 on Tuesday.

PRICES

* Barges of Eurobob gasoline for export traded at around
$785-$788 a tonne fob ARA, up from $784 the previous day.

* Eurobob's crack to dated Brent BFO- rose to $9.40 a
barrel from $9.00.

* Outright Brent futures for May LCOc1 were 1.5 percent at
$86.11 a barrel by 1642 GMT.

* New York RBOB gasoline futures RBC1 rose nearly 1
percent to $2.2961 a gallon.

NAPHTHA

* Naphtha cargo prices were lower at around $735 a tonne cif
NWE, down $5 as the return of 80 percent of flights to European
airspace calmed fears refiners would severely curtail jet fuel
output, which could potentially hit naphtha yields.

* Naphtha swaps also fell at the front with front month
prices at $734 a tonne cif NWE, from $740 on Tuesday. Cracks
held in negative territory with May at around minus $4.40.

SWAPS

* Gasoline swaps held their structure with a $3.60 contango
spread between May and June. Outright May was priced at $785.40
with the crack at $7.35 a barrel, down slightly on the day.

TENDERS

* Traders are also eyeing stronger exports to Nigeria as the
NNPC issued its import tender for May through July, with the
West African nation looking for between 30-40 cargoes according
to traders. [ID:nLDE63J23O]

DEMAND

* Gasoline demand rose by 1.8 percent last week according to
a Mastercard SpendingPulse report released on Tuesday.
[ID:nN20117012]
 (Reporting by David Sheppard; editing by James Jukwey)

Source: http://in.reuters.com/article/oilRpt/idINLDE63K2DE20100421