Europe gasoline prices slump over Crimea-driven crude fall

17 March 2014 16:12 Source:ICIS News

LONDON (ICIS)--European gasoline barge prices have fallen rapidly as ICE Brent crude oil futures declined as trader concerns over sanctions on Russia eased, industry sources said on Monday.

Eurobob gasoline barge prices declined from $935/tonne FOB (free on board) ARA (Amsterdam-Rotterdam-Antwerp) during morning trade to $912/tonne FOB ARA in the afternoon.

The switch from winter-grade Eurobob gasoline barges to the summer-grade is due to take place later on this week, a gasoline trader said.

There were multiple trades in the Eurobob market with energy major Total selling the majority of barges. The grade is considered a benchmark in the northwest European gasoline physical markets.

By 15:46, front-month ICE Brent crude futures had dropped by around $2.00/bbl as trader concerns over sanctions on Russia eased.

The Crimean leadership asked to join Russia after the Sunday referendum, in which 97% of voters backed independence from Ukraine.

Brent also remained pressured by the eurozone annual inflation rate which was revised down to a lower-than-expected 0.7% in February, underlining deflation risks in the bloc.

By Cuckoo James