08 August 2013 12:14 [Source: ICIS news]
LONDON (ICIS)--European gasoline prices have decreased by 2-3% week on week on lower crude oil values, industry sources said on Thursday.
On Thursday, gasoline traded at $986-989/tonne (€740-742/tonne) FOB (free on board) ARA (Amsterdam-Rotterdam-Antwerp), down from $1,004-1,018/tonne on Thursday 1 August.
Around 6,000 tonnes of the European Eurobob gasoline grade was sold early morning on Thursday 8 August as upstream crude prices dropped from the previous day's settlement.
Noble Group bought a combined volume of 4,000 tonnes of Eurobob from Shell and Swiss trading firm Vitol. Shell also sold 2,000 tonnes to trading firm Gunvor, while BP sold another 2,000 tonnes to investment firm Morgan Stanley.
EuroBob grade is considered a benchmark in the physical gasoline markets in northwest Europe.
A fall in the ICE Brent crude oil futures since last week is considered to be the primary reason behind the 2-3% fall in gasoline prices.
October ICE Brent crude oil futures fell from $108.24/bbl at 15:30 GMT on Thursday 1 August to $107.19/bbl at 10:57 GMT on Thursday 8 August.
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.
Naphtha prices are also falling on the back of softer crude oil values, and were assessed at $882-885/tonne CIF (cost, insurance & freight) NWE (northwest Europe) on Thursday morning.
($1 = €0.75)
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