London (Platts)--6Feb2012/712 am EST/1212 GMT
The European gasoline market weakened for the second straight trading day on Friday, as the market continued to drift downwards following last week's eight-month highs. On Friday, the February FOB Rotterdam Eurobob gasoline crack swap fell an additional $0.50/b to be assessed at $7.20/b. Friday's drop brings the total fall for the February crack swap to $3/b in a week, following an eight-month high on January 27. Market sources said weakening cracks are evidence that the market has calmed slightly from the bevy of bullish refinery news that has hit it over the last week. "It's just been one of those things," a European gasoline source said. Article continues below... Request a free trial of: European Marketscan European Marketscan delivers everything you need to gain a full and clear 360 degree view of the European oil products market each business day. European Marketscan is the tool used by all the major players in the oil market. It provides trusted, reliable and comprehensive coverage of European refined oil product markets and ensures you are kept up to date with the driving forces behind the latest changes in key product prices.
The European gasoline market weakened for the second straight trading day on Friday, as the market continued to drift downwards following last week's eight-month highs. On Friday, the February FOB Rotterdam Eurobob gasoline crack swap fell an additional $0.50/b to be assessed at $7.20/b. Friday's drop brings the total fall for the February crack swap to $3/b in a week, following an eight-month high on January 27. Market sources said weakening cracks are evidence that the market has calmed slightly from the bevy of bullish refinery news that has hit it over the last week. "It's just been one of those things," a European gasoline source said.
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European Marketscan delivers everything you need to gain a full and clear 360 degree view of the European oil products market each business day. European Marketscan is the tool used by all the major players in the oil market. It provides trusted, reliable and comprehensive coverage of European refined oil product markets and ensures you are kept up to date with the driving forces behind the latest changes in key product prices.
"Sentiment for weeks was led by refinery news after refinery news." Throughout January, a rash of refinery news in both the US and Europe sent gasoline cracks soaring, as concerns about future gasoline supplies along the US Atlantic Coast rocked both the US and the European markets. Between January 23 and 27, the front-month FOB Rotterdam Eurobob crack swap rose $4.75/b, peaking at an eight-month high of $10.20/b on January 27. Over the same period, the front-month NYMEX RBOB gasoline futures contract gained 14.36 cents/gallon, hitting a near five-month high of 293.35 cents/gallon on January 27. However, cracks have slipped from recent highs, following a lag in bullish news. "Some of that news has stopped hitting [the market] over the last few days," the source said. "It's taken a bit of the heat out of the market."--Paula VanLaningham, paula_vanlaningham@platts.com
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