European gasoline cracks were well supported Tuesday as traders reacted in bullish fashion to Saturday's explosion and subsequent fire at PDVSA's 645,000 b/d Amuay refinery in Venezuela.
Sources said that the September FOB Rotterdam EBOB gasoline crack swap was trading at around $17.50/barrel in early trading Thursday -- around $2/b stronger than the closing value on Friday.
Traders said that the initial response was most evident in the US Gulf where cash premiums for cargoes were rallying strongly.
The 7.8 RVP conventional unleaded cash differential rallied strongly Monday with Platts assessing the market at October NYMEX RBOB contract plus 39 cents/gal up from from 21.5 cents/gal on Friday.
PDVSA was was heard to be in the market looking for up to 720,000 barrels of 95 RON gasoline for prompt delivery, with the US Gulf considered by traders as the most logical supply source.
"It [Europe] is already tight so this is 100,000 mt of more prompt demand that will only add to the global tightness," said one trader.
"The US Gulf moved the most with not so much movement in New York Harbor while the arbitrage from Europe looks more workable now," added a second trader.
