Gasoline, naphtha markets unaffected by threat of UK tanker strike

30 March 2012 13:33  [Source: ICIS news]

LONDON (ICIS)--The prospect of a UK tanker drivers’ strike and the subsequent panic buying of petrol and diesel at UK petrol stations during recent days has not yet affected the gasoline or naphtha markets, sources said on Friday.

“Well, demand on the forecourts has shot up, but it hasn’t changed the importers' schedules at all,” said a source in the UK gasoline industry.

“If anything, they are reluctant to bring in too many long-dated gasoline cargoes because if there is a strike, there is the potential they will have cargoes sitting on the water clocking up demurrage bills.”

The source added that while Eurobob gasoline prices have risen recently, this was not related to the extra demand at petrol stations.

When asked whether the threat of a tanker strike would likely affect demand for gasoline, and in turn naphtha for blending purposes, a UK-based naphtha trader said: “No, I don’t think so, although if it happens during the Easter weekend, a lot of drivers will be on the road.”

UK-based diesel sources were unavailable for comment.

By: Jo Pitches
+44 208 652 3214

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