July 2, 2012 / 4:14 PM / 5 years ago

Europe Gasoline/Naphtha-Supported, for now

LONDON, July 2 (Reuters) - Gasoline and naphtha refining
margins held up well on Monday, deriving support from demand
from the United States and Asia,  but there was scepticism about
whether it would last.
    Traders watched refiners to determine whether runs will be
increased or cut, and the extent to which outages may affect
supply.
    Poland's top refiner PKN Orlen said its model
refining margin stood at $9.10 per barrel in June, the highest
level since September 2008, PKN reported on Monday.
    A power plant overhaul and poor margins will shut Italian
unlisted energy group API's  3.9 million tonne a year (around
80,000 barrels per day) Falconara Marittima refinery for a year
from January 2013, an API source said on Monday. 
    Firmer refining margins for gasoline, in part due to demand
from the United States driving season, has also helped narrow
the negative refining margins for naphtha, but sustained weak
demand may see this as a short term phenomenon, traders said.
        
    GASOLINE 
    * One barge of benchmark Eurobob gasoline traded in the
window at $937 a tonne fob ARA. None traded in the window the
previous session 
    * Before the window, some 3,000 tonnes traded ahead of the
window at $941-$942 a tonne fob ARA, up from the $916-$940 a
tonne on Friday, catching up with a rapid rise in crude before
the weekend.
    * Hess, Vitol and Gunvor sold to Cargill and BP.
    * Three barges of premium unleaded traded at $938-$939 a
tonne fob ARA, within the $936-$940 a tonne range the previous
session. 
    * By 1540 GMT, Eurobob's crack to dated Brent BFO- was at
around $16.93, up from the  $14.39 close the previous session.
    * ICE Brent crude futures were down $1.80 at $96.00
a barrel. 
    * U.S. RBOB gasoline futures were down 1.3 percent at
$2.5967 a gallon around the same time.
    * RBOB's crack to U.S. crude futures RB-CL1=R was trading
at $26.26 a barrel, up slightly from the $25.56 a barrel on
Friday.
                             
    NAPHTHA NAF-C-NWE
    * Two naphtha cargoes traded in the window. Gunvor sold to
Vitol and bought from BASF at $769 and $768 a tonne cif NWE
respectively. This was up from the bids and offers in the
$753-$769 a tonne cif NWE range on Friday.
    * The crack for July was at around minus $10.30 a tonne cif
New and minus $11 for August.
    * Traders said that naphtha had looked weak in early trade,
but was bid higher during the window.

 (Reporting by Simon Falush, editing by William Hardy)

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