Europe Gasoline/Naphtha-Prices edge higher with oil

Wed Aug 22, 2012 12:45pm EDT

LONDON, Aug 22 (Reuters) - Gasoline barge prices in
northwest Europe edged higher on Wednesday, boosted by late
gains in crude oil and a larger-than-expected draw in U.S.
gasoline stocks.
U.S. government data showed gasoline inventories had fallen
962,000 barrels last week to 202.74 million barrels, against
analyst expectations of a 700,000 barrel draw. The fall in
stocks could help revive imports.
Traders said a lack of prompt supply was also supporting the
spot market.
"There is not a lot of oil about and good demand, into west
Africa, Mexico, etc," said a gasoline trader.
Traders are hoping for a recovery in exports to West Africa,
where pressure on the Nigerian government is mounting to resume
subsidy payments for fuel.
Many private fuel importers have stopped importing gasoline
because the government is holding up payments.
Nigeria's capital city suffered severe fuel shortages on
Wednesday, as a union halted deliveries and threatened to cut
supplies to the rest of the country by Friday.
"We shall see if that will actually be realised," said a
gasoline trader, doubtful that a resolution was in sight.
A parliamentary probe found corruption in Nigeria's fuel
subsidy scheme cost the country $6.8 billion in three years, but
efforts to end subsidies have been in vain.
Naphtha is still seeing steady demand from petrochemical
companies in Europe, which are switching away from rival
feedstock propane. The propane/naphtha spread has flipped into
positive territory, with propane cargoes trading at a $10
premium to naphtha for September.

GASOLINE
* Five Eurobob barges traded in the window at $1,094-$1,06 a
tonne fob ARA, while a sixth for delivery at later dates in
September traded at $1,088 a tonne fob ARA.
* Prices were at the upper end of Tuesday's $1,090-$1,094 a
tonne fob ARA range.
* Seven barges traded ahead of the window at $1,094-$1,06 a
tonne fob ARA. Trafigura, Cargill and Glencore bought from
Gunvor, Hess, Chevron and Vitol.
* Eurobob's crack to dated Brent BFO- was at $14.56 a
barrel at 1626 GMT, steady from the previous close.
* Three barges of premium unleaded gasoline traded in the
window, two at $1,120 a tonne fob ARA and one at $1,108 a tonne
fob ARA. Prices were up from $1,107-$1,111 a tonne fob ARA the
previous session.
* Statoil sold the barges to Total and Vitol.
* ICE Brent crude futures were up 17 cents at
$114.81 a barrel around the same time.
* September U.S. RBOB gasoline futures were up 0.74
percent at $3.0879 a gallon around the same time.