The Mediterranean gasoline cargo market has switched from a $19.75/mt discount under the Northwest European Eurobob market to a premium of $10.75/mt in two weeks, on limited supply, market sources said.
"The Med is totally dry...the arbs have been way too good into the Arab Gulf versus the Med ... so all the volumes come from that side of the world," a trader said referring to the Mediterranean gasoline export market pricing more competitively into the Persian Gulf versus Asia.
The Mediterranean FOB gasoline cargo value was assessed at $962/mt Wednesday, $10.75/mt over the FOB Amsterdam-Rotterdam EBOB barge value and up from a discount of $4.75/mt Tuesday. This is the highest this premium has been since the Mediterranean market moved to the more expensive summer grade gasoline.
The Med gasoline cargo market has also been supported by demand into North Africa, with Algeria's Sonatrach issuing a tender on April 30 for four cargoes for delivery over May but purchasing up to seven, market sources said.
Sonatrach also tendered on Tuesday for two cargoes for delivery June 10-20, sources said.
A source at Sonatrach could not be reached for comment.
Low cargo availability has also been compounded by poor refining margins at the beginning of May that saw some refiners reduce runs, market sources said.
"June has no availability at the moment...as some refineries have reduced runs, many traders are looking for gasoline," a trading source said.
In the Platts Market on Close assessment process Wednesday, Gunvor bid $963/mt for a cargo loading June 5-9 without trading. Totsa also bid in the Platts MOC for a Med gasoline cargo, reaching a flat price of $954/mt.
