Eurobob cash premiums in Northwest Europe slipped below $20/mt on Tuesday, as Gunvor sold to Totsa, Morgan Stanley and BP during the Platts Market on Close Assessment process.
FOB Rotterdam Eurobob gasoline barges were assessed at $989/mt on Tuesday, or a $19.50/mt premium to the August FOB Rotterdam EBOB gasoline outright swap at $969.50/mt.
This is the lowest cash premium since June 28, when barges were trading at a cash premium of $14.75/mt to the then-July swap.
Sources said that the thin gasoline market in Europe has contributed to the drop in outright values.
"With the backwardation where it is, it's not allowing people to do much blending in ARA, so the situation is just rolling forward," a European gasoline trader said, drawing attention to the recent stagnation in the market.
During early European trading on Wednesday, market sources reported 3,000 mt worth of EBOB trades at a cash premium of $26/mt above the August EBOB swap.
