June 12, 2014 / 5:54 PM / in 4 years

Europe Gasoline/Naphtha-Gasoline firms on tighter European product

LONDON, June 11 (Reuters) - Gasoline prices and the prompt
crack firmed on Thursday despite the jump in crude futures as
the United States will have to import more European product but
these supplies are tightening. 
    Although U.S. inventories data for gasoline was bearish
overall, the east coast was less well supplied. The summer
driving season is arriving and with U.S. refineries reducing
runs, foreign imports will have to be increased, traders said,
leaving the arbitrage open.
    "U.S. inventory figures released yesterday from the EIA
paint a relatively bearish picture for gasoline in the Atlantic
Basin. The gasoline stockbuild of 1.7 million barrels
week-on-week came about despite refineries on the U.S. Gulf
Coast having run some 5.4 percentage points lower than the prior
week," JBC Energy consultancy wrote in a daily note.
    But imports from Europe have become more expensive due to
tight naphtha supplies in the region, which is helping to push
up U.S. Rbob futures, as the U.S. blends in more naphtha into
its gasoline than Europe. Naphtha has become tight due to absent
high-naphtha yield Libyan oil as well as run cuts.
    "Libya has been down long enough that the amount of naphtha
lost is the equivalent of having six medium refineries out,
which is why Q2 was so tight but it wasn't affecting the New
York Harbor until now," one trader said. 
    Gasoline stocks held at Europe's Amsterdam-Antwerp-Rotterdam
(ARA) storage hub fell by 10.1 percent to 885,000 tonnes in the
week to Thursday, data from Dutch oil analyst Pieter Kulsen

    * One barge of benchmark Eurobob traded in the Platts window
at $1,038 a tonne fob ARA. Total sold to Gunvor.
    * Outside the window, 6,000 tonnes traded at $1,027-$1,036 a
tonne fob ARA, up from $1,012-$1,015 a tonne on Wednesday.
Phillips 66 sold to Trafigura, Gunvor and BP.
    * Two barges of premium unleaded gasoline traded in the
window at $1,037 and $1,038 a tonne fob ARA, up from Wednesday's
deals at $1,021 a tonne. Noble sold both to BP and Total.
    * At the market's close, the July swap was trading at $1,021
a tonne up from $1,004 a tonne fob ARA in the previous session. 
    * By 1614 GMT, Eurobob's crack to dated Brent BFO- was at
about $11.52 a barrel, up from $10.84 a barrel on Wednesday. 
    * Brent crude oil futures were up $2.25 a barrel at
$112.20 a barrel at 1542 GMT. 
    * U.S. RBOB gasoline futures for June were up 1.88
percent at $3.0570 a gallon, and the prompt crack RB-CL1=R was
at $22.40 a barrel.
    * One cargo of naphtha traded in the window at $952 a tonne
cif Northwest Europe, up from $937 and $940 a tonne cif NWE in
the previous session. BASF sold to Shell.   
    * The prompt crack was at minus $5.28 a barrel, according to
Reuters calculations.

 (Reporting by Julia Payne; Editing by David Evans)

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