Gasoline refining margins in northwest Europe edged higher on Thursday, boosted by the prospect of a sharp rise in shipments to Nigeria after a large tender emerged while further gains were tempered by high US stocks. The crack hit its lowest since mid-March 2016 last week and has been hanging at a lower level on average for the last month compared with the same time the previous year.
Gasoline stocks in the Amsterdam-Rotterdam-Antwerp refining and storage hub were up nearly 27 percent on rising imports and slower exports out of the area, data from Dutch consultancy PJK International showed. Another cold snap in the United States is set to eat into profits for US ethanol makers after output of the corn-based biofuel fell sharply for a second straight week. Ethanol is used in gasoline blending.
Gunvor sold to BP one barge of eurobob gasoline in the afternoon session at $642 a tonne fob ARA, up from $633 a tonne on Wednesday. Elsewhere, 4,000 tonnes traded at $637 and $641.50 a tonne fob ARA, up from $637-$640 a tonne the day before. Gunvor sold to Shell and Trafigura. Varo sold to Total seven barges of premium unleaded gasoline at $665 a tonne fob ARA, up from $654 a tonne. Varo sold Total an eighth barge at $667 a tonne.
Gunvor sold a cargo to Vitol at $641 a tonne fob Med loading January 22-26, up from a deal at $637 a tonne the day before. BP offered a cargo at $654 a tonne fob Med loading February 1-5. The February swap stood at $645 a tonne at the close, up from $636.50 a tonne. The benchmark EBOB gasoline refining margin fell to $5.52 a barrel from $6.12 a barrel. Brent crude futures were up 56 cents at $69.76 a barrel by 1709 GMT.