European gasoline cracks extend gains

13 May, 2018

Benchmark northwest European gasoline barge cracks extended gains on Thursday, buoyed by a big draw in US inventories last week. Trading activity was largely muted, with several European countries having public holidays. US gasoline stocks fell by 2.2 million barrels last week, according to the Energy Information Administration, compared with expectations in a Reuters poll for a drop of 450,000 barrels.
Exxon Mobil Corp was preparing to restart the second-largest crude distillation unit (CDU) at the 502,500 barrels per day (bpd) Baton Rouge refinery in Louisiana, sources familiar with plant operations said. Marathon Petroleum Corp's 459,000 bpd Galveston Bay refinery and adjoining 86,000 bpd Texas City refinery were back to normal operations on Wednesday, a day after power was disrupted, said sources familiar with plant operations. No barges of EBOB gasoline traded in the afternoon window. An offer emerged at $731 a tonne fob ARA, up from trades at $725 in the previous session.
Elsewhere, 6,000 tonnes of eurobob gasoline traded on barges at $732-$733 a tonne fob AR, up from $723-724 on Wednesday. AOT sold to BP and Shell. Statoil sold two barges of premium unleaded gasoline to BP at $735 and $738 a tonne fob ARA. No cargoes traded. Bid and offer discussions were at $727.50-$729 a tonne fob Med. The June swap stood at $730 a tonne at the close, up from $725.50.

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