The front-month Eurobob gasoline barges crack was assessed at a six-month low on Monday, as the Northwest European gasoline market showed length amid closed arbitrage opportunities.
The front-month Ebob crack swap was assessed at $6.30/barrel, down from $6.95/b on Friday. This is the lowest value since February 10 when the front-month crack swap was assessed at $6.35/b, Platts data shows.
In February, the front-month swap reflects the less-expensive winter-specification gasoline, while in August, the front-month swap incorporates the more-expensive summer-spec gasoline.
"They are losing their strength," said a market source with reference to lower values for gasoline cracks.
"I don't think they could go further down than this," said another market source.
Overall, the crack swaps reflect a weakening physical market, under pressure from increased output from refineries and closed arbitrage opportunities to the US Atlantic Coast -- one of European gasoline's strategic arbitrages.
Physical FOB Rotterdam Ebob barges were assessed at $937/mt Monday, with a $2.50/mt premium to the front-month August swap. On Friday, they had been assessed at $939/mt with a $1.25/mt premium to August.
