Europe Gasoline-storm support limited; arb negative

LONDON, Nov 9 (Reuters) - European gasoline prices rose on
Monday, tracking gains in crude oil prices since late last week
and getting some support from a tropical storm heading towards
the U.S. Gulf coast.

But traders said the gains were limited as disruption to
U.S. Gulf oil refineries was likely to be limited, dampening
prospects for better arbitrage export opportunities.

Ida has been downgraded from a hurricane to a tropical
storm. While some oil and gas production has been shut in, most
refineries in the U.S. Gulf have been operating normally.
[ID:nN09212389] [ID:nN09263651]

"Immediate market impact seems very limited so far. We have
to wait and see," a trader said.

The trader added further support may come later in the month
if disruptions to offloading operations of gasoline to be
imported into the United States reduces inventories.

PRICES

* Barges of 10ppm premium unleaded winter gasoline rose to
$702-$704 a tonne fob ARA, up from $680-$683 at Friday's close.

* The crack to dated Brent BFO- strengthened by 70 cents to
$6.50 a barrel. Traders said the crack reflected the gains in
crude oil prices early on Monday and after the European market
close on Friday.

* In September last year, when a storm disrupted some
refinery operations in the United States, an increase in
arbitrage demand pushed up the Eurograde's crack to above $20 a
barrel, Reuters data showed.

* U.S. RBOB gasoline RBc1 was trading about 3.9 percent up
at $1.9955 a gallon, with its cracks to U.S. crude futures
CLc1 at $4.02 a barrel.

* U.S. crude futures were trading 2.96 percent up at $79.72
a barrel.

SWAPS

* On the swaps market, the balance of November was $703.50 a
tonne, with backwardation widening to $3.50 a tonne from $1.75
on Friday.

* The spread between December and November was a contango of
$8.25 a tonne.

* Swaps showed the arbitrage gasoline shipment from Europe
to the United States would be a larger loss of $1.50 per tonne
than $1 on Friday.

* Naphtha swaps were $670 a tonne for the balance of
November, with $2 backwardation to December.

* Physical naphtha cargoes were thinly discussed. But
support may come from an expected pick up in Asian demand,
traders said. [ID:nSP83546]
(Reporting by Ikuko Kurahone and Emma Farge; editing by Sue
Thomas)