Europe Gasoline-Gasoline dips but African exports support cracks

LONDON, June 15 (Reuters) - European gasoline prices eased
on Monday, but expectations of strong exports to Nigeria and
West Africa meant the fall was slight relative to crude, pushing
cracks up by more than $1 a barrel.

Crude prices fell by almost 2.5 percent, but gasoline was
down by less than 1 percent.

"The arbitrage to the United States and the Middle East is
shut," one broker said. "But all eyes remain on West Africa and
Nigeria for now where demand remains strong."

PRICES

* Premium unleaded 10ppm gasoline barges traded between $710
and $722 a tonne fob ARA in late European trade, compared with
Friday's close at $721 to $727.

* About 25,000 tonnes traded throughout the day, with Vitol
buying 18,000 tonnes in the evening window. Shell was the other
main buyer, with Chevron, Morgan Stanley, BP and Glencore all
sellers.

* European gasoline prices have risen from below $500 a tonne
at the beginning of May as supplies have started to tighten
ahead of the U.S. summer driving season.

* But tight domestic supplies created by refinery cuts have
seen European prices rise to the point the arbitrage to the U.S.
has slammed shut. Brokers pegged the current arbitrage at less
than $1.

* Exports to Nigeria and West Africa have supported prices.

* The Eurograde's crack to dated Brent BFO- rose to $16.70
from $15.60 a barrel on Friday.

* In the United States, New York RBOB gasoline futures
RBc1 were trading down 3 cents at $2.01 a gallon.

STRIKES

* Talks aimed at resolving an industrial dispute at Total's
Lindsey refinery in England broke down. The contractors' dispute
has not impacted production, Total said. [ID:nLF650364]

REFINERIES

* Saudi Arabia will start gasoline production at its $10.3
billion PetroRabigh refinery in July, industry sources said on
Monday. [ID:nLF543118]

* The 60,000 barrel per day refinery may cut imports of the
motor fuel from the world's top oil exporter. Traders said Saudi
Arabia typically imports between 60,000 to 70,000 bpd of
gasoline a month.

INVENTORIES

* Inventories in independent storage at the
Amsterdam-Rotterdam-Antwerp hub rose by 67,000 tonnes to 685,000
tonnes, Dutch oil analyst Pieter Kulsen said last
Thursday.[ARA/]

NAPHTHA

* Naphtha was discussed around $575 to $580 a tonne, easing
with crude and gasoline.
* Stocks rose by 19,000 tonnes in Europe last week. [ARA/]

SWAPS

* Gasoline swaps were around $678 for July, with the
backwardation to August rising sharply to around $14.50 a tonne
from $10 on Friday.

* Cracks were up to $14.70 a barrel for June. The third
quarter was $9.25, up by almost a dollar from Friday.
(Reporting by David Sheppard; Editing by Sue Thomas)