Europe Gasoline/Naphtha-Cracks rise on robust exports to US, crude slump
Adds naphtha bids/offer
May 30 (Reuters) -Northwest European gasoline refining margins ticked up to over $24 a barrel on Tuesday, boosted by stronger transatlantic exports and a slump in crude oil prices.
Oil prices fell by about 4% on concerns about whether the U.S. Congress will pass the U.S. debt ceiling pact and as mixed messages from major producers clouded the supply outlook ahead of the OPEC+ meeting this weekend.O/R
Russia's offline primary oil refining capacity is expected to fall by 38% in June from May to 3.05 million tonnes, industry sources said and Reuters calculations showed on Tuesday.
Northwest Europe (NEW) gasoline exports so far in May to the United States are robust, according to Refinitiv analyst Raj Rajendran, with April loadings bound for the U.S.being revised upwards to 1.26 million tonnes from 1.06 million tonnes.
Shipments to the U.S. sofar in May rose to 790,000 tonnes up from 618,000 tonnes estimated last week and this could rise to the million-tonnesmark, Rajendran said.
Shipments to West Africa (WAF) in May are at a paltry 370,00 tonnes, sharply less than the revised 797,000 tonnes in April, he added. Exports rose sharply to Latin America. NEW flows in May on the two major routes (U.S.and WAF) were estimated at about 1.2 million tonnes, down from 2.05 million tonnes in April, Refinitiv data shows.
Sparta Commodities analyst Philip Jones-Lux said the transatlantic arbitrage window has shut for blenders from mid-June onwards.
British supermarket Asda said it would buy the bulk of petrol station operator EG Group's UK and Ireland business to speed up its move into the convenience sector, creating a company with combined revenue of nearly 30 billion pounds ($38 billion).
Global freight volumes show signs of having bottomed out in the first quarter, signalling the industrial cycle may be near its trough, which could provide some support to oil prices later in 2023.
Gasoline stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area fell by more than 4% over the week as a result of rising exports to west Africa and the United States, Dutch consultancy Insights Global said. ARA/
U.S. gasoline stocks fell last week by a larger-than-expected 2.1 million barrels to 216.3 million barrels, EIA data showed. EIA/S
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Reporting by Shadia Nasralla
Editing by Vinay Dwivedi and Sharon Singleton
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