European gasoline margins weak, exports to Asia pick up

18 May, 2018

Benchmark northwest European gasoline refining margins weakened on Monday amid a rally in crude prices, while exports of components to Asia picked up. The mixed aromatics arbitrage from Europe to Asia opened in recent days, with at least four cargoes booked so far. PetroIneos chartered one 37,000 tonne MP MR Tanker on Monday, according to traders and shipping data.
A drop in European cracks and low storage levels in China were the main drivers of the opening arbitrage, traders said. Exports to the US East Coast remained limited even as the peak driving season approaches, traders said.
Gasoline stocks in independently held storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell to their lowest since January in the past week, data from Dutch consultancy PJK International showed. 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.

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