West African-grades gasoline cargoes loading in Northwest Europe jumped to a three-week high Tuesday as spot prices were boosted by strong demand for West African-grade gasoline cargoes following a bigger than expected Nigerian spot tender for March delivery.
FOB NWE WAF gasoline cargoes were assessed $20/mt higher on the day at $629.50/mt Tuesday, their highest level since February 6, S&P Global Platts data shows.
Nigerian National Petroleum Corp. awarded eight MR-size West African-grade gasoline cargoes to more than four companies for delivery into Nigeria between March 3-4 and the end of March, trading sources said Tuesday. These so-called "intervention cargoes" will be supplied in addition to the Direct Sale Direct Purchase cargoes. NNPC was not immediately available for comment.
NNPC issued last week a tender for six "intervention cargoes" for delivery over four laycans in March.
"As predicted, it's severely skewed the rest of the winter pricing," a trader said, referring to the rising price of West African-grade gasoline cargoes loading end-February and the first half of March.
Price ideas for West African-grade gasoline cargoes were heard discussed on a FOB NWE basis at a $1/mt discount to Platts 10 ppm unleaded barges Tuesday, up from a $16/mt discount last week, and on a DAP Lome basis at a premium of more than $20/mt over Platts 10 ppm unleaded barges.
In the meantime, Northwest European 10 ppm premium unleaded gasoline barges rose to a 23-month high versus Eurobob gasoline barges Tuesday as FOB AR 10 ppm premium unleaded gasoline barges gained $4.50/mt to be assessed at $643/mt, which represents a premium of $37.25/mt over the physical Eurobob gasoline barges, up from a $34/mt premium the previous day.
"All the focus is on the offshore market," another trader said. "It is a crazy market because [NNPC] bought all these cargoes at the same time," he added.
