Cracks drop following lower exports

Benchmark northwest European gasoline barge refining margins dropped close to $4 a barrel on Monday after transatlantic exports slipped last week, but a pickup in shipments this week could add support.

• Gasoline exports from northwest Europe to the United States (U.S.) eased last week by 3% from the week before, and flows to West Africa are slowing, according to Refinitiv analysis.

• But gasoline exports on the transatlantic route are expected to rise this week to 185,000 tonnes, up by 67% compared with the previous week, according to Refinitiv analysis.

• Also bullish for cracks, gasoline stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area fell to 1.269 million tonnes in the week to Thursday, data from Dutch consultancy Insights Global showed.

• Separately, tough new sanctions on Russian oil shipments taking effect from December are likely to boost already high tanker rates as buyers race to replace cargoes and are forced to use longer routes, a leading ship manager said.

• Hungary can only maintain a fuel price cap beyond Jan. 1 if oil shipments from Russia flow without interruption and oil and gas group MOL's refinery in Szazhalombatta operates continuously, the government said on Monday.