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Oil, Gas, Petrochemical and Energy Field Specialized Channel

Asian Gasoline Demand Rise Tightens European Market

Market participants said demand was strong in the PG region due to the annual Islamic pilgrimage to Mecca.

 

European gasoline prices have spiked this week after a spurt of increased demand for 92 RON gasoline from Asia after India's Reliance Industries declared force majeure on gasoline exports from its Jamnagar refinery on Tuesday, sources said Thursday.

"Barrels I would be getting here could go East now," a trader in Northwest Europe said Thursday.

Shipping sources said that charterers had been scrambling to book Long Range 1 tankers to cover short positions in the Persian Gulf.

On Wednesday, the STI Prestige was heard on subjects for a 60,000 mt gasoline cargo loading in Amsterdam-Rotterdam-Antwerp on August 25 for a voyage to the Persian Gulf at a lump sum of $775,000, after the Gulf Crystal was heard on subs on Tuesday afternoon, also for a 60,000 mt cargo on the same route, at lump sum $800,000.

"I hear 5-7 cargoes affected by Reliance's force majeure...already I heard 3 LR1 tankers [moving gasoline] from ARA to PG, so the Reliance impact has happened and been priced in unless we see further delays on the FCC unit," said one north Asian trader.

A Singapore-based shipping source said charterers of tankers laden with gasoline in Europe were asking for voyage options to PG and seeing freight ideas at the $1 million level.

Market participants said demand was strong in the PG region due to the annual Islamic pilgrimage to Mecca, (Hajj) and key Asian importer Pertamina had plans to import 11-12 million barrels of gasoline in September -- the highest of 2018, as monthly imports had not ranged above the 10 million barrel level after falling from a peak of 12 million barrels in December 2017, Platts data showed.

 

News Code: 
13596

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