09 April 2008 16:34 [Source: ICIS news]
LONDON (ICIS news)--European benchmark 10ppm (parts per million) summer spec gasoline reached a record high on Wednesday with several barges being traded at $958/tonne (€606.5/tonne), brokers said.
The rise was on the back of the weekly Energy Information Administration's (EIA's) US stock data which showed a 3.4m barrel decrease in US gasoline stocks.
Today's trades were done on a FOB (free on board) ARA (Amsterdam, Rotterdam, Antwerp) basis.
The fall in gasoline stocks represented the second consecutive weekly decrease in the region.
Industry sources said that the stock decrease was largely expected, since refinery utilisation was reported to be weaker in the US due to high gasoline stocks and poor refinery margins.
However, sources added the 3.4m barrel decrease was larger than the 2.5m fall forecast by analysts.
European spot gasoline prices rose, as this would enhance the possibilities for a Europe to US gasoline arbitrage window, which was rumoured to be borderline earlier in the week.
Some brokers reported refiners had already exported a handful of cargoes to the US, however traders were not yet able to exploit this window of opportunity profitably.
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