Brent gives up gains Thursday after US gasoline data

London (Quantum Commodity Intelligence) - Brent prices retreated Thursday, eroding more than Wednesday's gains, with jitters creeping in over US oil demand following this week's weekly oil statistic and ahead of the US jobs report Friday.

Naphtha and gasoline took the brunt of the falls after Wednesday's Energy Information Administration report that showed a 700,000-barrel build in gasoline stocks over the week to April 30 to add to the 100,000-barrel build the previous week.

July Brent was trading at $68.57/b by 16.30 UK time, down $1.10/b from the same time Wednesday, and also down 16 cts/b from the same time Tuesday.

But the crude future was still maintaining the strong gains on April 29 when the front month broke through $68/b.

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Naphtha cargoes in the north were bid at $5 above balance May paper and offered at $7 to set prices. But the paper values crashed lower, and prices fell $13.25/mt ($1.47/b), and the crack value versus Brent fell 39 cts/b to -$2.07/b. June paper saw heavier losses, dropping $14/mt, and its crack value dropped 54 cts/b.

Gasoline barges in ARA were the usual mixed bag of moves, although all three main grades saw losses. Premium unleaded, assessed at 16.30 UK time, was the most reflective of the market, dropping $11/mt ($1.32/b). The nearby Eurobob swaps curve saw heavier losses, with June$1.13/b) paper falling $12.75/mt at 16.30 UK time compared to Wednesday, and its crack value fell 50 cts/b.

Jet barges traded at $22 above May Low Sulfur Gasoil futures, and prices dropped $8/mt ($,1.01/b). The spread below cargoes narrowed to 75 cts/mt.

Balance month Low Sulfur Gasoil futures, combing May and June contracts, fell $8.20 ($1.10/b) and the June calendar value fell $8.42/mt ($1.13/b), slightly outstripping Brent's losses. Diesel barges in ARA traded around -75 cts and -$1.50/mt below May futures. The swaps curve for diesel barges looks flattish across the next 12 months, with June paper trading at $552/mt at the close, and May 2022 paper trading at $547.25/mt. But crack values rally from $5.90/b in June up to $9.30/b in 12 months' time.

High sulfur fuel oil barges dropped $5.50/mt and marine fuel (0.5% sulfur) barges dropped $2.75/mt to widen the spread between the two grades to $104/mt. But this was the narrowest part of the curve with the spread ballooning to $130.50/mt between December swaps.