Europe Gasoline-Prices firm above $650 on tight Med supply

LONDON, July 24 (Reuters) - European gasoline prices edged
slightly higher above $650 a tonne in very light trade on
Friday, supported by tight supplies in the Mediterranean, and
hopes for further exports to the Middle East and United States.

Traders said widespread run cuts and refinery maintenance
had tightened the Mediterranean market, while Saudi Arabia
continued to look for imports from the region.

PRICES

* Premium unleaded 10ppm gasoline barges traded at
$655-$653.50 a tonne fob throughout the day. Prices are at their
highest level since the end of June. Gasoline has risen by
almost $50 a tonne in Europe this week.

* Volume was limited with no trades in the evening trade
window. About 7,000 tonnes changed hands throughout the day.

* The crack to dated Brent BFO- eased to around $8.90 a
barrel from $9.50.

* Brent crude futures were up 40 cents at $69.65 by 1641
GMT.

* U.S. RBOB gasoline futures RBc1 were flat just above
$1.90 a gallon.

FUNDAMENTALS

* Saudi-based Rabigh Refining and Petrochemical Co 2380.SE
(PetroRabigh) is facing problems at its new gasoline-making
residual fluid catalytic cracking (RFCC) unit, traders said on
Friday. [ID:nSP335914]

* Because of this, Saudi Aramco will need to continue
importing two or three cargoes per month of gasoline into the
Red Sea region until September, when they hope gasoline
production will start to increase at PetroRabigh, traders said.

NAPHTHA

* Naphtha was not discussed in the public trade window.

SWAPS

* Gasoline barge swaps extended gains and the front month
climbed to a four-week high of $651 a tonne fob ARA.

* Gains were concentrated on the nearby contract and the
intermonth spread between August and September widened to $11.50
from $7 at Thursday's close.

* The remaining months were backwardated through to
December.

* August naphtha swaps firmed by $1 to $577 a tonne cif ARA
and the backwardation at the front end of the curve held.
(Reporting by David Sheppard and Emma Farge; editing by Ikuko
Kurahone and Peter Blackburn)