European fuel rates hit fresh 10-month outright highs on rising crude oil prices
Straight-out European gasoline prices surged on the back of rallying unrefined prices to fresh 10-month highs Thursday, as splits stayed generally supported throughout the day on worries about future supply, traders claimed.
On Thursday, the FOB Rotterdam Eurobob gas barge rate climbed up $25/mt from Wednesday's close to be valued at $1,122.50/ mt, while the FOB Rotterdam 10 ppm gasoline barge rate acquired $27/mt to be assessed at $1,144/ mt.
Both markets are at highs not seen because Might 10, 2011, Platts data shows, when EBOB barges were assessed at $1,136/ mt and also 10 ppm barges were valued at $1,145/ mt.
atmp chemical -month ICE Brent agreement jumped $3.29/ b compared with its 1630 GMT Wednesday mark to trade at $126.25/ b at 1630 Thursday, as concerns concerning future unrefined materials and market optimism regarding Greek debt enhanced prices.
While high crude prices are the key motorist behind the rate jump, investors claimed, the European gas market is unseasonally solid as current refinery closures in both Europe as well as the United States and the possibility of further cuts to refining margins feed favorable belief in the market.
The balance-month FOB Rotterdam EBOB fracture swap, which determines the cost efficiency of EBOB barges versus Brent crude, fell 5 cents/b on Thursday to close at $8.90/ b, in spite of the sharp uptick in unrefined values.
" Margins still aren't wonderful, as well as refineries still have the option to reduce [runs] to [strengthen] splits," a gas investor said. "If middle distillates keep dropping, something needs to maintain the margins up, or refineries would simply quit completely. Bearish distillates is bullish gasoline."
Investors claimed that while overall global demand for fuel continues to be muted, current refinery closures and also the possibility of extra run cuts over crude prices is assisting to reinforce fractures.
" The difficult thing is that need isn't terrific to start with, specifically in the US and also Europe," another trader claimed of the strong fractures. "However emerging markets and refinery closures seem to be propping up fractures. If we obtain run cuts, despite weak demand, [splits] might keep up."
On Thursday, the FOB Rotterdam Eurobob gas barge rate climbed up $25/mt from Wednesday's close to be valued at $1,122.50/ mt, while the FOB Rotterdam 10 ppm gasoline barge rate acquired $27/mt to be assessed at $1,144/ mt.
Both markets are at highs not seen because Might 10, 2011, Platts data shows, when EBOB barges were assessed at $1,136/ mt and also 10 ppm barges were valued at $1,145/ mt.
atmp chemical -month ICE Brent agreement jumped $3.29/ b compared with its 1630 GMT Wednesday mark to trade at $126.25/ b at 1630 Thursday, as concerns concerning future unrefined materials and market optimism regarding Greek debt enhanced prices.
While high crude prices are the key motorist behind the rate jump, investors claimed, the European gas market is unseasonally solid as current refinery closures in both Europe as well as the United States and the possibility of further cuts to refining margins feed favorable belief in the market.
The balance-month FOB Rotterdam EBOB fracture swap, which determines the cost efficiency of EBOB barges versus Brent crude, fell 5 cents/b on Thursday to close at $8.90/ b, in spite of the sharp uptick in unrefined values.
" Margins still aren't wonderful, as well as refineries still have the option to reduce [runs] to [strengthen] splits," a gas investor said. "If middle distillates keep dropping, something needs to maintain the margins up, or refineries would simply quit completely. Bearish distillates is bullish gasoline."
Investors claimed that while overall global demand for fuel continues to be muted, current refinery closures and also the possibility of extra run cuts over crude prices is assisting to reinforce fractures.
" The difficult thing is that need isn't terrific to start with, specifically in the US and also Europe," another trader claimed of the strong fractures. "However emerging markets and refinery closures seem to be propping up fractures. If we obtain run cuts, despite weak demand, [splits] might keep up."
