01 May 2013 16:10 [Source: ICIS news]
LONDON (ICIS)--European gasoline prices fell by 4% on Wednesday from the previous day as ICE Brent crude oil futures extended losses to fall below $100/bbl, industry sources said.
"It is just drifting down with the futures," a gasoline trader said.
On Wednesday afternoon, gasoline traded at $908/tonne FOB (free on board) ARA (Amsterdam-Rotterdam-Antwerp), down from $943-944/tonne on Tuesday.
BP sold 2,000 tonnes of the European EuroBob gasoline grade to Total. Eurobob is considered a benchmark in the physical gasoline markets in northwest Europe.
Meanwhile, June ICE Brent crude oil futures fell to $99.72/bbl around 14:30 GMT on Wednesday, down from $102.16/bbl at 16:30 GMT on Tuesday.
Gasoline futures contracts also slipped in line with the lower crude oil prices.
June ICE RBOB gasoline futures fell by 2.55% from the previous day's close to $2.7305/gal at 15:30 GMT on Wednesday.
Gasoline demand has "not at all" picked up in Europe, as demand from the key US export market remains lower than expected, the trader maintained.
Gasoline fundamentals in US and Europe, along with domestic petrochemical margins, have traditionally charted the course of naphtha demand in Europe.
The main application of naphtha is in the petrochemical production of olefins. Naphtha is also used as a feedstock for gasoline blending.
($1 = €0.76)
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