Los Angeles gasoline prices hit 22-month high

Rare ARA-east gasoline booking hints at growing demand

Rare ARA-east gasoline booking hints at growing demand

London, 5 March (Argus) — A rare high-volume gasoline cargo booking from Amsterdam-Antwerp-Rotterdam (ARA) to Singapore, even though it failed today, signals growing demand east of Suez for European oil products as the Iran war disrupts Asia-Pacific gasoline balances. Trading firm Gunvor's chartering arm Clearlake booked a Long Range 2 (LR2) vessel on 4 March to load gasoline at ARA for Singapore delivery, but it was cancelled today, according to sources. The Sti Connaught had been put on subjects — provisionally booked — to load 90,000t of gasoline from the UK Continent or ARA on 9 March for Singapore delivery, according to a fixture seen by Argus . The reason for the failure was not immediately known. But the rare booking could suggest interest east of Suez for European gasoline is increasing as buyers look beyond the Mideast Gulf to secure supply, according to market participants. Europe to Singapore product flows are uncommon, one Singapore-based analyst said. European gasoline deliveries to Singapore stood at just 114,000t between 2022-2025, according to Kpler. In comparison, Mideast Gulf deliveries to Singapore were at 619,000t in the same period, according to Kpler. Prompt Asian gasoline prices surged further during regional trading hours today as concerns mounted over Chinese export availability, tightening supply in an already short market, while additional reports of cargo cancellations from Japan or India also supported values. Traders in Asia-Pacific are starting to look far afield to source product for the region. Highlighting the severity of the supply tightness in Asia-Pacific, ExxonMobil, in an extremely rare move, booked two Medium Range (MR) tankers provisionally from the US Gulf to Australia on 4 March, likely carrying 92 RON spec unleaded gasoline, at $6mn lumpsum each, or $157.89/t. A gasoline cargo of an undisclosed size was also booked for Australia loading in Barcelona, an analyst told Argus today, although it could not be confirmed. Higher freight rates for oil products tankers since the Iran war broke out on 28 March were holding traders back from booking European gasoline or naphtha cargoes for destinations east of Suez at the start of the week . The Japan-bound LR2 rate from the Mideast Gulf surged to the five-year high of WS435 ($98.53/t) on 4 March, a 117.5pc leap from WS200 ($45.30/t) on 27 February. The LR1 rate on the route climbed to WS440 ($99.66/t), a 100pc jump from WS220 ($49.83/t) over the same period. Similarly, the Mideast Gulf to the UK Continent LR2 rate reached a five-year high of lump sum $8.7mn — with the previous high at $8.8mn on 27 April 2020 — and the LR1 rate reached a two-year high of lump sum $6.5mn — with the previous high at $7.4mn on 31 January 2024. But a widening spread between Singapore 92 Ron front-month swaps and physical non-oxy gasoline barges in Europe could make the trade economics more favourable, even though increased oil products movements on that route may lift freight rates further. Singapore 92 Ron front-month swaps were at a $7.52/bl premium to European non-oxy gasoline barges yesterday, a three-year high, according to Argus calculations. By George Maher-Bonnett and Erika Tsirikou Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.