The premium of the physical Eurobob barges assessment was at a 10-month high Thursday as a result of tightness in the prompt physical market.
The FOB Rotterdam Eurobob barges market was assessed Thursday at $1,045.25/mt with a $29/mt premium to the equivalent front-month swap and heard trading in the range of a $33/mt premium to the front-month swap on Friday morning.
This was up from $1,044.50/mt on Wednesday, when it was assessed at a $24/mt premium to the front-month swap. Thursday's premium assessment is the highest since September 6, 2013, when Ebob gasoline was assessed at $1,023/mt with a $31.50/mt premium to the front-month swap.
"Still tight as everyone has empty tanks due to the backwardation," said a Northwest European gasoline trading source.
Market sources attributed tightness to lower refinery runs, following a worsening of refinery margins.
The swaps market also showed a steepening of the backwardation, with the balance-month/front-month gasoline swap spread assessed at $17.75/mt, up from $15.75/mt the previous day.
