Phillips 66 lifted Lukoil’s offer in the Market on Close assessment process Friday, narrowing the discount to Northwest Europe. Lukoil came in with an offer at 157 cents/gal FOB USG, walking it down to 156.75 cents/gal FOB USG, where it was lifted by Phillips 66. Friday’s trade moves the discount to the FOB ARA marker to minus 1.17 cents, down from minus 3.49 cents Wednesday, as Gulf Coast pricing neared parity with Northwest Europe. Last Friday, the previously stable premium reversed into a discount, where it has remained for the entirety of the week. Sources have attributed weaker pricing to situations unfolding in Venezuela and Mexico, with multiple participants pointing to length in the market. Related energy softened day on day, with NYMEX March RBOB falling 3.33 cents day on day to $1.4258/gal. Blended and shipped values were last estimated at near 208 cents/gal while the MTBE factor relative to gasoline was 1.0944. Elsewhere, the FOB Singapore was $2 lower at $613/mt while FOB ARA fell 5.07 cents to 157.92 cents/gal.
Spot USG MTBE was assessed Friday at 156.75 cents/gal FOB USG, down 2.75 cents day on day, in line with a deal done in the Csg Market on Close assessment process.