Gasoline leads oil complex lower amid Covid-19 crisis in India

Gasoline led the European oil complex lower Tuesday as the rapid spread of Covd-19 in India trumped the bullish news of a force majeure on Libyan crude exports and the slide in the dollar index.

Travel restrictions in some areas of India will be in place until at least the start of May and this will affect approximately 125 million people.

Driving levels are 10% lower that record on April 10, according to analysts at S&P Global Platts.

Brent fell $1/bb just over $1/b by 16.30 UK time compared to the same time Monday, but was slight compared to premium unleaded gasoline.

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The naphtha crack tumbled $1.58/b amid the general light end slump.  

But the biggest fall was reserved for premium unleaded gasoline barges in AR at 16.30pm UK time which were down $15/mt ($1.80/b). The all-day assessed of Eurobob E5  barges in AR fared better on the back of early afternoon trades at $641/mt and then $628.50/mt, but was still down $8.75/mt from yesterday, or $1.05/b. Eurobob E10 defied the downturn with two 9am UK time trades at $651.50/mt, setting the day's price.

Despite India placed on the red list by several countries – New Zealand, Hong Kong, the UK and the US have either banned flight services to and from India, or have advised citizens against traveling – jet barge and cargo prices only fell in line with crude, dropping $8/mt, or $1.01/b.

Other middle distillate outpaced losses in Brent. Front month Low Sulfur Gasoil futures were trading at $518.5/mt by the close, down $10.75/mt ($1.44/b) from Monday. The drop in Indian diesel demand may increase exports of the fuel onto the world market. Diesel barges in ARA also fell $10.75/mt.

The fuel oil market continued to be mixed. Highs sulfur fuel oil barges were little impacted by India's problems, dropping only $5.50/mt (86 cts/b). But the distillate based marine fuel (0.5% sulfur) slid $10.25/mt.