Europe Gasoline-Gasoline hits 8-month high on African demand

LONDON, June 16 (Reuters) - European gasoline prices soared
to a fresh 8-month high above $740 a tonne on Tuesday, boosted
by strong demand from West Africa and Nigeria, rallying crude
and U.S. gasoline futures and relatively tight supply.

Gasoline's crack also jumped, as a 3 percent rise for the
motor fuel overshadowed gains in crude of less than 2 percent.

"The market is still pretty tight right now," one trader
said. "Demand in the U.S. looks healthy but the arbitrage is
still not great. I can see more volume heading to Africa."

PRICES

* Premium unleaded 10ppm gasoline barges traded between $733
and $743 a tonne fob ARA in late European trade, compared with
Monday's close at $710 to $722.

* Trade was relatively light, with about 10,000 changing
hands in the evening dealing window. Vitol was the main buyer
for the second day in a row, followed by Shell and Total.
Glencore and BP were the main 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 just
over $1, which is not likely to be high enough to leave a profit
after shipping costs.

* Exports to Nigeria and West Africa have supported prices.
Nigeria is expected to issue a tender for gasoline imports for
the third quarter this week, trade sources told Reuters on
Tuesday. [ID:nLG603406]

* The Eurograde's crack to dated Brent BFO- rose to $17.25
from $16.20 a barrel on Monday.

* Brent crude oil LCOc1 hit a high of $72.40 a barrel, but
pared gains on weaker equity markets later in the session,
trading at $71.62 up $1.38 a barrel at 1624 GMT.

* In the United States, New York RBOB gasoline futures
RBc1 rose to their highest level since early October, hitting
$2.1124 a gallon. The contract has traded in a wide range from
an early low of $2.0461 a gallon.

OUTPUT

* Ukraine gasoline output fell 6.3 percent in January-May to
1.32 million tonnes. [ID:nLG609584]

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 $705.50 for July, with the
backwardation to August rising sharply to around $16.50 a tonne
from $10 on Friday.

* Cracks were up by more than a dollar to $15.80 a barrel
for June. The third quarter was at $10.30 from $9.25 on Monday.
(Reporting by David Sheppard; Editing by James Jukwey)