LONDON: Gasoline refining margins in northwest Europe rose sharply on Wednesday after a larger than expected draw in US inventories.
US gasoline stocks fell by 5.5 million barrels last week, compared with analysts’ expectations in a Reuters poll for a drop of 17,000 barrels, Energy Information Administration data showed on Wednesday.
Cracks were also buoyed by a rise of around $1 in US renewable fuel credits hit in early trading on Wednesday, traders said.
Prices continue to surge in the wake of the US Environmental Protection Agency’s decision to back off programme reforms.
The rise in credit prices helped boost US gasoline margins to a session high of $18.83 a barrel, a nearly 6 percent jump, before falling back.
Statoil’s 240,000 barrels per day Mongstad refinery remains partly shut following a naphtha leak on Tuesday, and the timing of return to normal operations was unclear, a spokeswoman said on Wednesday.
GASOLINE
No eurobob gasoline barge trades emerged in the afternoon trading window. Bids were seen at $569 a tonne fob ARA, in line with bid levels the previous day.
Earlier in the day, 4,000 tonnes traded at $571-$571.50 a tonne fob Amsterdam-Rotterdam, compared with $557.50-$558 a tonne on Tuesday. Total sold to Gunvor and Shell.
No trades of premium unleaded gasoline emerged. A offer was made at $579 a tonne, up from trades at $564-$570 a tonne the previous day.
The November swap stood at $564 a tonne at the close, up from $559 a tonne.
The benchmark EBOB gasoline refining margin rose to $9.51 a barrel from $8.04 a barrel on Tuesday.
Brent crude futures were down 16 cents at $58.17 a barrel at 1538 GMT.
US front-month RBOB gasoline futures were down 0.75 percent at $1.7027 a gallon.
The RBOB crack versus US crude was 0.73 percent lower at $17.68 a barrel.
Source: Brecorder.com
