Khobar: Planned and unplanned refinery shutdowns in the Middle East provided a modest boost for gasoline demand, but left the market oversupplied, traders said.
Saudi Arabia's PetroRabigh confirmed last week it started initial gasoline production after a technical glitch hit the unit.
Following the shut down, Saudi Arabia, which typically imports between 60,000 barrels per day (bpd) and 70,000 bpd of gasoline, has been looking to buy extra cargoes on the spot market, traders said.
It bought three cargoes of gasoline at the Mediterranean spot gasoline quote plus $15, one trader said.
Aramco also issued a term tender to buy gasoline for September and November, one trader said without giving further details.
In addition, state-run Abu Dhabi National Oil Co (Adnoc) plans to shut its two gasoline units at its 415,000 barrels per day (bpd) Ruwais refinery for a month starting in September, traders said on Wednesday.
This could lead Adnoc to import 150,000 tonnes of gasoline.
But one trader predicted it would take more than the Saudi and UAE buying to counteract the levels of surplus gasoline.
"Six cargoes a month in the region are not enough to push premiums back up, this is just half of what Iranians used to consume," he added.
"The market is still oversupplied with the United Arab Emirates and Saudi Arabia the only buyers," said a second trader.
Iran's gasoline imports have shrunk following U.S. and EU sanctions that have specifically targeted its energy trade.
Most naphtha cargoes for September-loading have already been sold, traders said, adding the market remained bearish.
One trader pegged spot premiums were in the "$3-$4 type range", little different from levels talked a week ago of $5 or less.
Middle Eastern suppliers including Saudi Aramco, Kuwait Petroleum Corp and ADNOC, have been forced to sell their barrels in the spot market after buyers either dropped their contracts, or reduced term volumes, because they considered asking levels to be too high.
Qatar's Tasweeq emerged to offer a spot naphtha cargo for second-half September loading, adding to volumes from Kuwait and the UAE, as well as up to 600,000 tonnes for a 12-month loading period, starting October, traders said last week.
The gas oil market in the Middle East has begun to soften after high levels of East/West trade increased the supplies in the region.
Trafigura bought from Bahrain's Bapco 30,000 tonnes of 500 ppm cargo at $2.80/barrel for end-August loading, down from a deal at $3.10 per barrel a week ago.