The Northwest European Eurobob gasoline barge market has weakened steadily over the last week, as an improved supply picture with refineries coming back from turnaround during April and lackluster demand have put pressure on the price structure, sources said.
On Monday, the last day of April trading, the front-month May FOB Rotterdam EBOB gasoline outright swap was assessed at $1,074/mt, or a $16.50/mt premium to the June swap at $1,057.50/mt.
This is down sharply from a month ago, on March 30, when the then front-month April outright swap was assessed at a $38.25/mt premium to the May swap.
"It's been coming off since about mid-April," a European gasoline trader said Tuesday. "Plants have been coming back from turnaround, there aren't a great deal of arbitrage options, poor demand, over-anticipation of the summer spec change...it could really be a combination of anything."
April was a strong month for physical European gasoline, as a series of refinery turnarounds in Northwest Europe combined with strong buying from West Africa to boost market sentiment and cash premiums in the NWE barge markets.
On April 3-4, for example, physical FOB Rotterdam Eurobob gasoline barges were assessed at a $62/mt premium to the May front-month swap.
Monday, physical EBOB barges were assessed at a $7/mt premium to the front-month swap.
