The Trans-Atlantic gasoline arbitrage reopened Tuesday on the heels of stronger prices in both the Northwest Europe and US East Coast markets.
Platts assessed the Eurobob barge at $469.25/mt, or $1.3412/gal, while RBOB cargoes delivered into New York were assessed at $1.4516/gal.
With a freight cost of about 5.60 cents/gal, gasoline sent from Europe to the USAC would gain around 1.67 cents/gal, the first time the on-paper economics of that voyage were profitable since mid-August.
Increased tightness in the FOB Mediterranean gasoline market pushed strengthen into Northwest Europe, widening the spread between the two markets to an eight-month high.
The Eurobob barge assessment Tuesday at $469.25/mt is the highest in nearly two weeks.
On the USAC, gasoline price drew support from stronger futures contracts despite weaker cash prices and steep backwardation.
Tuesday's outright assessment for RBOB cargoes at $1.4516/gal is the highest in nearly three weeks, while the differential fell 1.25 cents/gal to NYMEX RBOB plus 2.25 cents/gal.
"With the arbs being so wide open and high stocks, there are plenty of barrels in New York Harbor," one trader said.
Weekly stocks of gasoline on the USAC fell to 57.6 million barrels the week ended November 11, the third-straight week inventories dropped, according to Energy Information Administration data. But that figure is still 7.73 million barrels higher than the same week last year and million barrels higher than 2013.
Furthermore, Irving Oil's 300,000 b/d refinery in Saint John, New Brunswick, is expected to reach full rates in the coming week after an eight-week planned maintenance.
The plant is one of the biggest refined products supplier in the region.
