Europe Gasoline/Naphtha-Naphtha cracks fall with weak demand

LONDON, Sept 18 (Reuters) - Naphtha margins continued to
shed gains on Tuesday due to thinning petrochemical demand and
limited arbitrage opportunities.
The recent spike in outright crude prices has dented
petrochemical demand for naphtha as a feedstock, leading to a
build up of cargoes in the Amsterdam-Rotterdam-Antwerp hub.
Naphtha crack swaps hit just over a 7-month high in the
first week of September at minus $1.90, and has since fallen to
below minus $6.00 a barrel.
"There are cargoes stacking up outside ARA and unsold
Murmansk, with one more that loaded yesterday expected to
arrive," said a naphtha trader.
Russia exports several naphtha cargoes per month each from
three Arctic ports - Murmansk, Vitino and Arkhangelsk.
Total won a prompt September naphtha cargo loading from
Libya's Ras Lanuf refinery, several traders said. The cargo was
believed to be loading into Long Range vessel with more product
from Italy's Milazzo refinery and bound for Asia, several
traders said but this was not confirmed.
Total is not the only trader to be sending naphtha east
despite a very thin arbitrage opening. Vitol recently booked the
LR vessel Myrtos for Asia, traders said.
"Physical premiums over MOPJ (japanese naphtha swaps) are
high, but its still a 'push' movement, rather than a pull," the
same trader added.
Gasoline demand in West Africa was said to be lacklustre
with most buyers covered from the first half of September, one
market participant said. A fourth quarter Nigerian buy tender is
expected but financing remains problematic.
"Not sure it will make much difference if people haven't
been repaid subsidies, and those that have may struggle for
financing," the same market participant added, "I see it
continuing with NNPC (Nigeria) buyers."
Nigeria has been cracking down on fraudulent subsidy claims,
which has led to tougher regulation but in the process also held
up past payments including to its state oil company NNPC.

Nigeria has been swapping products for crude due to these
straightened circumstances.

GASOLINE
* No barges of benchmark Eurobob traded in the window for a
seventh session.
* Some 12,000 tonnes traded ahead of the window at
$1,095-$1,110 a tonne fob ARA, down from $1,127-$1,131 a tonne
on Monday.
* The trades came at premiums to the October swap of
$54.50-$63.50 a tonne, down from $62.50-$65.00 a tonne.
* Gunvor, BP, Noble and Total sold to Shell, Cargill, Lukoil
and Mabanaft.
* At 1604 GMT Eurobob's crack to dated Brent BFO- was at
around $16.63 a barrel, down from $18.70 a barrel around the
same time on Monday.
* Five barges of premium unleaded gasoline traded in the
window at $1,098 a tonne fob ARA, down from $1,131-$1,137 a
tonne.
* Vitol sold all the barges to Total.
* ICE Brent crude futures were down $1.04 at $112.75
a barrel at 1606 GMT.
* October U.S. RBOB gasoline futures were down 0.52
percent at $2.9280 a gallon around the same time.
* RBOB's crack to U.S. crude futures RB-CL1=R was at
$27.00 a barrel, up from $26.84 a barrel around the same time on
Monday.

NAPHTHA NAF-C-NWE
* No cargoes traded in the window. Trafigura, Glencore,
Total and Gunvor offered $948-$959 a tonne cif Northwest Europe
down from Monday's deals at $982 a tonne.
* The prompt naphtha crack fell to minus $7.50 a barrel from
around minus $5.86 a barrel, traders said.

(Reporting by Julia Payne; Editing by William Hardy)