Europe Gasoline-Edges lower on U.S. stock build

LONDON, June 24 (Reuters) - European gasoline prices edged
lower on Wednesday after bearish U.S. stocks data dampened
expectations for arbitrage shipments across the Atlantic.

The U.S. Energy Information Administration (EIA) on
Wednesday showed gasoline stocks grew more than three times the
expected amount last week by 3.9 million barrels.

Weakness in gasoline pulled crack spreads down to a 7-week
low of less than $8 a barrel.

PRICES

* Premium unleaded 10ppm gasoline barges traded in a range
of between $635 and $638 a tonne fob ARA, down slightly from
Tuesday's mid-point of $639.50 at market close.

* Volumes were steady with 14,000 tonnes changing hands
during the day.

* Gunvor, Total and Glencore were the main sellers while
Cargill and Neste were buyers.

* Brent crude futures LCOc1 were down 51 cents at $68.29 a
barrel at 1725 GMT, paring gains in volatile trade after the EIA
data. [O/R]

* The crack to dated Brent BFO- fell to $7.22 a barrel
from $10.09 on Tuesday.

* U.S. RBOB gasoline futures RBc1 fell by nearly 3 percent
to $1.84 after the second set of U.S. data showing higher
inventories.

SWAPS

* Gasoline swaps ended the day slightly higher despite the
bearish news in the cash market. The balance of June contract
closed at $637.50 a tonne, leaving the backwardation structure
on the front end of the curve intact.

* The spread between June and July closed at $2 a tonne.

* News Iran's gasoline imports for July were likely to be
steady provided support to prices further out. [ID:nLN101885]

* Cracks narrowed and were $5.50 a barrel for the third
quarter and $1.20 for the fourth quarter.

NAPHTHA

* Naphtha prices rallied to $570 a tonne cif ARA compared
with $562 on Tuesday on sustained buying interest. One cargo
changed hands between Vitol and Stasco at $570 a tonne for
delivery between 15-19 July and another was discussed between
$570 and $575 for similar delivery dates.

* Brokers said traders were looking for more opportunities
to ship naphtha east after four long-range tankers were booked
to Asia last week.

* The July-August backwardation widened to $4 a tonne, with
August trading at $566 a tonne.
(Reporting by Emma Farge and David Sheppard; editing by James
Jukwey)