Europe Gasoline/Naphtha-Gasoline margins up, transatlantic export margins weaken

Reuters12-21 01:53

LONDON, Dec 20 (Reuters) - Northwest European gasoline refining profit margins rose by around 44 cents to $7.20 a barrel on Friday, while analysts said potential cargo exports to the U.S. became financially unviable.

* Around 4,000 tons of Eurobob E5 barges traded. Shell sold to ExxonMobil and Mabanaft.

* In the Argus window, two UL98(98Ron) barges traded, as Trafigura sold to Mabanaft and ExxonMobil.

* Nigeria's Dangote Refinery is now operating at 85% capacity and is on course to deliver European-standard products by January, an executive told Reuters on Friday.

* European gasoline margins have become unfavourable to export cargoes to the U.S. as inventories in the U.S. Gulf Coast rose to weigh on prices, Sparta Commodities analyst Philip Jones-Lux said.

* Surplus European gasoline could find a home in Latin America, Jones-Lux added.

* Gasoline stocks held in independent Amsterdam-Rotterdam-Antwerp $(ARA)$ storage reached their highest in 13 months and hit 1.37 million tons in the week to Thursday, up 1% from the previous week, according to consultancy Insights Global.

* Gasoline swap contracts after January 2025 are now in contango, incentivising gasoline storage.

* Meanwhile, E.U. and U.K. gasoline exports were set to drop in December to 1 million barrels per day (bpd), down from 1.15 million bpd, according to Kpler.

Trade Bid Offer Prev. Seller Buyer

Ebob Barges

MOC Platts

E5

(fob ARA)

<EUROBOB-AR

A>

Ebob Barges

E10 Platts

(fob ARA)

Ebob Barges $673.75 $669 Shell ExxonM

Argus E5 (4KT) obil

(fob AR) and

Mabana

ft

Ebob Barges $673.75 $672.17

E10 Argus (assesse

(fob AR) d)

Jan swap $671.75 $668

(fob ARA)

Premium

Unleaded

(fob ARA)

<PU-10PP-AR

A>

Cargoes

(fob MED)

Cargoes

(cif NEW)

Naphtha Jan + Jan +

(cif NEW) $4 $4

Ebob crack (per barrel) $7.20 Prev. $6.76

Brent futures

Rbob

Rbob crack

(Reporting by Enes Tunagur; Editing by Shreya Biswas )

((Enes.Tunagur@thomsonreuters.com;))

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