June 22, 2009 / 5:33 PM / 10 years ago

Europe Gasoline-Plummets on lower U.S. RBOB futures

 LONDON, June 22 (Reuters) - European gasoline prices
plummeted by more than 8 percent on Monday after a large
sell-off in U.S. RBOB gasoline futures lowered expectations for
exports to the United States.
 European barges have fallen by almost $60 in one day,
trading as low as $624 a tonne from above $680 in late Friday
 U.S. RBOB futures have collapsed from a year high just above
$2.10 a gallon last Tuesday to around $1.84 a gallon on Monday
on concerns demand will be curtailed in the United States over
the summer by rising unemployment and high prices at the pumps.
 "It's all about RBOB gasoline today," one broker said. "The
arbitrage is still open as European prices have dropped by a
similar amount, but there are real concerns about demand." 
 * Premium unleaded 10ppm gasoline barges traded at $624 to
$630 a tonne fob ARA, down from Friday's close at $682.
 * Trade volume totalled around 16,000 tonnes on Monday,
about half the volume seen on Friday.
 * The crack to dated Brent BFO- fell to $8.47 a barrel
from around $10 on Friday.
 * Brent crude oil futures LCOc1 fell by 4 percent on
Monday to trade at $66.60 at 1658 GMT.
 * In the United States, New York RBOB gasoline futures
RBc1 fell by more than 4 percent to $1.8400 a gallon, having
closed at $1.9244 a gallon on Friday.
 * Gasoline swaps fell to $626 a tonne for the balance of
June from above $680. The spread between June and July narrowed
sharply to $1.00 a tonne, with the backwardation to August also
narrowing to $6.75 a tonne from around $10.00 on Friday.
 * Cracks were $6.50 a barrel for the third quarter and $1.10
for the fourth quarter. The fourth quarter crack stood above $2
a barrel on Friday.
 * Naphtha prices fell, tracking losses in gasoline and
crude. Prices were to around $546 from $585 a tonne cif NWE.
 * The spread between naphtha and gasoline narrowed at one
point to around $80 a tonne, before moving back out to sit
around $84 a tonne.
 * Brokers said they did not see the spread narrowing beyond
$75 a tonne during the summer driving season.
 * Naphtha crack swaps were minus $6.10 a barrel for the
third quarter and minus $7.50 for the fourth quarter.
 * Swaps for July were at $542 a tonne, with the market in a
slight backwardation to August at $541.50 a tonne.
 * European gasoline output fell by almost 3 percent in May
from April, down to 3.071 million barrels per day, industry
monitors Euroilstock reported on Monday.
 (Reporting by David Sheppard and Emma Farge; editing by
William Hardy)

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