Europe gasoline suffers as demand plummets and margins weaken

01 November 2013 12:51  [Source: ICIS news]

LONDON (ICIS)--European gasoline markets are suffering from a decline in demand, leading to a weakening in margins for refiners, industry sources said on Friday.

The weak refining margins from gasoline could lead to refiners extending the autumn seasonal production cutback into winter, sources added.

  Refinery Margins
 Gasoline  -$2.72/bbl
 Naphtha  -$6.57/bbl

Refinery margins on Friday: ICIS assessment

The normally more expensive northwest European physical gasoline barges are now up to $16/tonne cheaper than naphtha barges, with prices for the benchmark Eurobob gasoline barges currently at $900-913/tonne FOB (free on board) ARA (Amsterdam-Rotterdam-Antwerp).

A naphtha buyer said: "The world is too long on gasoline. For a month or so, gasoline entries were increasing and increasing in the US, demand is not great. In general, I think because of the crisis in south of Europe they don't use much gasoline."

Gasoline demand in the key US market continues to be poor, the buyer added: "US demand is not great and they produce more gasoline now because of shale."

($1 = €0.74)

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By: Cuckoo James
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