Europe Gasoline/Naphtha-Margins edge lower, ARA stocks fall

Frontline

21/12/2023 17:48

LONDON, Dec 21 (Reuters) - Northwest European gasoline
refining margins fell by 13 cents to $7.05 a barrel on Thursday
as stocks in ARA fell 6.7% during the week to Thursday,
according to Dutch consultancy Insights Global.
    * A total of 10,000 metric tons of Eurobob E5 barges traded,
with
Shell and Varo selling to Trafigura, Gunvor and Mabanaft. 
    * Eurobob E10 liquidity was 18,000 tons on Thursday, as
Exxon and
Shell sold barges to Total, Mabanaft, Sahara and Varo.
    * Included in the volume was a trade between Shell and Varo
done
against a non-oxy swap, the first ever according to trade
sources.
    * The trade comes ahead of a methodology change from January
by
price agency Argus Media to make the non-oxy, or Eurobob E10,
barge price its main benchmark as it moves to assessing Eurobob
E5 as a differential. It will also use an E10 derivative as the
basis of its Eurobob trades.
    * Gasoline stocks in ARA fell by 6.65% on the week to
983,000
tons, as naphtha fell by 7% to 265,000 tons, according to
Insights Global.
    * Large exports to West Africa in particular prompted the
gasoline
stock draw on the week, Insights Global's Lars van Wageningen
said, offsetting sluggish gasoline blending demand.
    * Naphtha stocks were drawn on because of an uptick in
demand in
the European petrochemical sector, he added, as supplies exited
ARA tanks for flows up the river Rhine.
    * Meanwhile, European gasoline output rose by 7.5% on the
month
and 2.7% on the year in November according to data from
Euroilstock, reaching 2.4 million barrels per day (bpd).
    * Naphtha output fell by 3.9% on the month but rose by 1.1%
on the
year to 892,000 tons, the data showed.
    * Overall European oil refinery output in November rose by
4.4%
from the previous month to 9.66 million bpd.


            Trades   Bids     Offers   Prev.    Sellers  Buyers
            (vol.)                     Trades            
 Ebob                                                    
 Barges                                                  
 MOC                                                     
 Platts E5                                               
 (fob ARA)                                               
                                                     
 Ebob                                                    
 Barges                                                  
 E10                                                     
 Platts(fo                                               
 b ARA)                                                  
 Ebob       $737.75                    $742     Varo,    Trafigu
 Barges     on 10KT                    (8KT)    Shell    ra,
 Argus                                                   Mabanaf
 E5(fob                                                  t,
 AR)                                                     Gunvor
 Ebob       $731.25                    $742     Exxon,   Totsa,
 Barges     on 18KT                    (10KT)   Shell    Mabanaf
 E10 Argus                                               t,
 (fob AR)                                                Sahara,
                                                         Varo
 Jan. swap  $735.75                    $748.50           
 fob ARA                                                 
 Premium             $792                                
 Unleaded            Dec.                                
 (fob ARA)           30-Jan.                             
                 Jan.                                
                     1-5                                 
 Cargoes                                                 
 (fob MED)                                               
 Cargoes                                                 
 (cif NWE)                                               
 Naphtha             2H Dec   Balmo    MOP +$1           
 (cif NWE)           +$10     Dec +$5                    
                                                       
 
     
 Ebob crack (per barrel)   $7.05          Prev. $7.18
 Brent futures              LCOc1 
 Rbob                       RBc1 
 Rbob crack                 RBc1-CLc1 
 
 (Reporting by Robert Harvey. Editing by Jane Merriman)
 ((Robert.Harvey@thomsonreuters.com; +447552256587;))