Recent surges in crude prices have put pressure on physical gasoline cracks, pulling them down from recent record highs, Platts data shows.
On Tuesday, Eurobob gasoline cracks, which measure the price performance of FOB Rotterdam EBOB gasoline barges against Dated Brent, were valued at $16.87/barrel.
While still well above the 2011 average crack of $5.66/b and the 2012 year-to-date average of $11.06/barrel, it is down from the record high of $21.10/b recorded on June 25, Platts data shows.
The decline in gasoline cracks has been due primarily to the recent sharp increase in crude prices, which has put pressure on products, sources said.
Since hitting an 18-month low of $88.62/b on June 25, benchmark Dated Brent has climbed 13%, to close at $100.42/barrel on Tuesday.
However, market sources said that the tight EBOB market in Northwest Europe has kept European gasoline prices buoyant, maintaining overall refining margins at relatively elevated levels despite the rise in crude prices.
"Northwest European margins are really good," a gasoline trader said. "They have come off a bit, but [even] with the strong Brent, we're still seeing [cracks] holding to a good level."
