London (Platts)--27Nov2012/949 am EST/1449 GMT
Northwest European gasoline cash premiums have collapsed as December approaches and the market experiences downward pressure from bearish fundamentals, a trader said Tuesday. FOB Rotterdam Eurobob gasoline barges were assessed by Platts at a $5.75/mt premium to December swaps at Monday's European close, the lowest level since October 31, when the premium was assessed at $3/mt. "It's not a surprise that cash premiums fall towards the end of the month. Look at the forward backwardation spreads; it doesn't make sense to have high premiums considering the lower backwardation," the trader said. The December-January backwardation spread has narrowed significantly on the week from levels of around $5/mt to $1.75/mt at Monday's close. The market is coming under downward pressure from bearish fundamentals, including the return of refineries from maintenance across Europe. In addition, US East Coast refineries that had halted production or cut rates due to Hurricane Sandy have now restarted, sources said. Last week, Phillips 66 began restarting its 238,000 b/d Bayway refinery in Linden, New Jersey, the agency noted. Bayway was one of at least six refineries that were affected by the hurricane and is the last to reopen. --Anna Ward, anna_ward@platts.com--Edited by James Leech, james_leech@platts.comSimilar stories appear in European Marketscan. See more information at http://www.platts.com/Products/europeanmarketscan