EIA data boosts European gasoline cracks, fuel oil rebounds, jet ends losing streak

London (Quantum Commodity Intelligence) - Gasoline price gains in Europe outpaced underlying Brent Wednesday, according to Quantum data, amid a boost in sentiment after US Energy Information Agency data showed a greater than expected stock draw.

The refining margin for the Eurobob E5 FOB ARA front-month swap (June) gained $0.34/b on the day to $9.75/b at the 1630 London close, while the July swap crack rose $0.30/b to $10.00/b,  according to Quantum data.

August Brent crude futures were trading around $0.33/b higher on the day at $68.77/b at the same time, but gasoline prices received an additional boost from the news that US gasoline stocks drew 1.7 million barrels over the week to May 21, versus expectations of a 600,000-barrel draw.

Prices for naphtha, which can be used as a gasoline blendstock, also picked up and the June swap crack for CIF NWE cargoes gained $0.07/b to -$2.3/b, while July was up $0.1/b to -$2.95/b.

Elsewhere in the European complex, high sulfur fuel oil cracks extended gains made overnight and earlier in the day, supported by Fujairah stock data showing residual fuel oil stocks down 1.7 million barrels to 11.87 million barrels over the week to May 24.

Cracks for June and July high-sulfur fuel oil barges FOB ARA closed $0.43/b and $0.42/b higher on the day at -$11.01/b and -$10.66/b, respectively.

Meanwhile, middle distillate margins were relatively stable, with benchmark low-sulfur gasoil futures tracking crude higher.

Jet fuel CIF NWE cracks did put paid to a 3-day losing streak, however, recovering marginally, with July making the largest gain at the front of the curve to slightly extend the front/second-month contango and narrow the July/August structure.