Eurobob oxy gasoline at fresh record low
Benchmark Eurobob oxy grade gasoline barges changed hands at fresh record lows this morning for a second consecutive session.
Deals at prompt Argus dates were agreed at an average price of $103.50/t, the lowest since 2009, and down by $72.25/t or $8.67/bl in two sessions. Eurobob oxy's previous record low was hit yesterday when prices sank to $126/t. But this morning's price also matches the all-time low on Eurograde gasoline — which was the previous European gasoline benchmark and a finished grade — reached in December 1998.
Outright gasoline prices have dropped precipitously on the back of plunging crude values, with front-month Ice Brent crude futures pricing at $19.13/bl at 11:30 BST (10:30 GMT) today, down by $7.21/bl from the close on Monday 20 April. Brent crude futures have faced sustained downward pressure since then, when in an historic session US WTI futures changed hands at negative values.
Eurobob oxy remains at a small premium to North Sea Dated crude of around $1.75/bl, having traded at discounts to crude for several sessions in April — and a discount of as much as $7/bl in late March. But the fact that gasoline prices have fallen faster than crude since 20 April suggests that traders continue to view the Covid-19 pandemic as having a more severe impact on gasoline markets relative to crude and other oil products, such as diesel. Gasoline sales in some European regions have fallen by as much as 90pc, although there are large regional variations. Demand in major European export destinations is also weak. US gasoline demand recently fell to a 29-year low while limited stateside storage capacity is also hindering shipments on the transatlantic route. Eurobob oxy was trading at a premium to North Sea Dated crude of $4/bl as recently as 15 April.
Weak gasoline margins to crude are creating a major headache for European refiners, which typically produce a gasoline surplus. A total of 11 European refiners have been confirmed to be cutting runs across the continent, with probably around 1.6mn b/d of capacity offline as a result. Mediterranean refiners are even being forced to shut down entirely amid a slump in demand and a lack of storage capacity. Other refineries are delaying restarts following maintenance because of a lack of demand for core products.
By Harry Riley-Gould
source: Argus Media
Top News
Six last month
MinRes halts Bald Hill mine amid lithium price rout
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Gold price faces worst week since 2021 as Fed signals no rate-cut rush
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Swapping aluminum for copper will maintain China’s resources, group says
Gold loses some luster after Trump’s decisive win
Hedge funds slash bullish wagers on gold over Trump election win
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Families gather at South African mine shaft where hundreds are feared stuck underground
BHP to spend up to $14 billion on Chilean copper expansion
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
China’s germanium, gallium ban could cost the US $3.4 billion
South Africa police standoff with illegal gold miners escalates
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Resolute Mining says it will pay Mali $160 million in tax dispute
Trump chooses oil fracking boss as energy secretary
Gold loses some luster after Trump’s decisive win
