10 April 2013 17:09 [Source: ICIS news]
LONDON (ICIS)--European gasoline prices have dropped 3% week on week because of poor transatlantic demand, industry sources said on Wednesday.
Gasoline prices for the European Eurobob grade dropped from $987-989/tonne (€750-752/tonne) FOB (free on board) ARA (Amsterdam-Rotterdam-Antwerp) on 3 April to $961/tonne FOB ARA by 10 April, according to ICIS data.
On Wednesday, Anglo-Dutch Shell sold 2,000 tonnes of gasoline to Dutch trading firm Trafigura at $961/tonne FOB ARA, a trader said.
A second trader attributed the weak gasoline demand in Europe to expectations of rising supplies in its key US export market.
"They’ve been producing a bit more gasoline. Also, there was support due to [ethanol] RINs [Renewable Identification Numbers] issues and this seems to be cooling down," the trader said.
However, gasoline demand could rise again on the approaching US summer driving season, the second trader added.
"It’s a big drop, it can still rebound as the gasoline season is just approaching."
Gasoline fundamentals in US and Europe, along with domestic petrochemical margins, have traditionally charted the course of naphtha demand in Europe.
Naphtha is used extensively as a gasoline blending component and in the petrochemical production of olefins.
($1 = €0.76)
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