12 September 2008 12:52 [Source: ICIS news]
LONDON (ICIS news)--Activity picked up in Europe’s gasoline markets as traders looked to sell gasoline into the US to take advantage of crack spreads over crude oil which had soared by $10/bbl to +$18/bbl (€13/bbl) from last week, market sources said on Friday.?xml:namespace>
“The focus of northwest Europe is to get the gasoline over to the ?xml:namespace>
Crude oil was on an upward trend, at 11:00 GMT Brent was at $98.80/bbl, a rise of $1.16/bbl from the previous day’s close, as Hurricane Ike headed for the US Gulf coast around
“The market is definitely worried about the impact of the hurricane on refinery production,” one gasoline trader said.
With Ike strengthening it also looked possible that damage could be sustained.
Any longer-term loss of gasoline production capacity would have a noticeable effect on prices, a trader said.
The high crack spreads have provided a welcome boost to the gasoline market, however.
“A lot of the trading desks have had a rubbish year and this might help people out of their misery,” a source said.
Demand had been slow in northwest
“No one wants to buy when you’re facing a cliff of $90 backwardation,” said a trader.
($1 = €0.72)
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