Reuters noted that with weak European gasoline demand and slack US summer import demand, European traders are looking at Asia for buyers. China is reported to be stocking-up on large quantities of fuel as refineries shut down ahead of the Beijing Olympics.
The gap between the Amsterdam-Rotterdam-Antwerp and the regional Singapore gasoline benchmarks has reportedly averaged around $53 per tonne in March 2008, with peak spread at $100 in mid-March 2008, according to the news source.
Reuters noted that with the demand-supply situation in Asia being tight, Indian state-oil firms are looking to sellers further afield for gasoline stocks. The situation is being reportedly exacerbated as local private fuel retailer Reliance is planning to take its network of 900 outlets offline.
Traders are reportedly not expecting higher import demand from India as Reliance’s 580,000 barrels-per-day expansion of its Jamnagar refinery comes on line in October 2008, causing a surge in supply. European traders are reportedly shorting gasoline for the second half of 2008, with the Jamnagar capacity expected to flood gasoline markets.
