24 July 2013 12:58 [Source: ICIS news]
LONDON (ICIS)--European gasoline prices have decreased by $24/tonne (€18/tonne) week on week on lower crude oil values, and despite a rise in demand within northwest Europe, industry sources said on Wednesday.
“There is good demand for spot barrels within northwest Europe,” a gasoline trader said.
But demand to the key US gasoline export market is frail.
“Not US.... I would say with the continued backwardation, buyers are happy to wait to pick up barrels on a spot basis,” the trader said.
August swaps are selling at a discount of $2.50-3.00/tonne to July price levels, creating a backwardation where prompt prices are higher than those delivered at a future date.
On Wednesday, July gasoline traded at $1,007-1,009/tonne FOB (free on board) ARA (Amsterdam-Rotterdam-Antwerp), down from $1,031-1,033/tonne last Wednesday.
BP sold 2,000 tonnes of the European EuroBob gasoline grade to Shell and 1,000 tonnes to trading firm Gunvor.
EuroBob grade is considered a benchmark in the physical gasoline markets in northwest Europe.
A fall in the September ICE Brent crude oil futures since last week is considered to be the primary reason behind the 2% fall in gasoline prices.
September ICE Brent crude oil futures fell from $108.56/bbl at 15:30 GMT last Wednesday to $107.70/bbl at 10:00 GMT on Wednesday.
Gasoline exports to the US use naphtha as a blendstock, and any fluctuation in gasoline demand could shift the price direction in the naphtha market.
($1 = €0.76)
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