Europe Gasoline Shipments Rise as New York Prices Hit Six-Month High
Gasoline cargoes from Europe arriving on the U.S. Northeast coast over the next 10 days are tracked at 408,000 metric tons (nearly 3.5 million bbl) on 11 tankers, according to the OPIS Tanker Tracker.
Of the nine vessels for which the destination has been signaled, seven are arriving in New York, one in Boston and another at Providence, information compiled from traders, brokers and satellite tracking data shows.
"If that's coming in, it should flood the market," said one New York Harbor trading source. "It should crush diffs."
Weekly gasoline imports were at 667,000 b/d, while stocks declined by 2.9 million bbl to 217.4 million bbl today's Department of Energy inventory report.
Some 1.32 million tons of gasoline on 36 tankers are currently identified to be loading in Europe and to arrive in the U.S. over June, according to the tanker tracker.
Although New York Harbor cargo prices for RBOB unleaded have gained in past days, the indicative arbitrage to buy gasoline in Europe and ship it to the U.S. for sale at a profit appears closed.
Front-month gasoline futures in Europe are trading at a price that is $19.62 per ton below the price of New York Harbor RBOB, according to the OPIS Trans-Atlantic Gasoline Ticker. With spot freight rates at $25.65 per ton, that shows a $5.84 loss. The arbitrage appeared open earlier this month.
New York Harbor RBOB was trading 2.1496 cents per gallon at 3.40 p.m. London time, with yesterday's average of the price at $2.12385 cents per gallon, the highest since November last year, OPIS data shows.