Gasoline stocks in the Amsterdam-Rotterdam-Antwerp region fell 15.9% week on week in the seven days to May 16, according to a report by BNP Paribas released Friday.
Stocks fell by 1.5 million barrels to 7.8 million barrels, and were 3.2% lower than the same period last year, the bank said.
Market sources pointed to demand from West Africa as well as a stronger Mediterranean gasoline market behind the draw in stocks.
"The Med came up, WAF is pulling, the US is up... demand is picking up, and it looks like there is not as much [gasoline] around," a trade source said Friday.
The cash differential for Eurobob barges in the ARA region rose to a premium Friday morning, heard trading as high as $3/mt over the equivalent June swap. This is up from the assessment of a $2.75/mt discount Thursday, Platts data shows.
The June FOB ARA EBOB barge crack swap was heard around the $12.40/barrel level Friday, unchanged from Thursday's assessment, which was up $1.15/b over the day.
Demand for West African grade in the Northwest Europe region has risen after traders noted a lack of gasoline cargoes available off the coast of West Africa to supply the region.
"Seeing prompt request from some buyers who still need to complete Q2 allocation, some small clips... but offshore market for spot requirements is totally dry," a WAF trading source said.
The strengthening of the Mediterranean gasoline market meanwhile has shut the arbitrage from the Med to NWE, therefore demand for CIF NWE, typically delivered cargoes into the UK, will be met by supply from the NWE region.
"FOB Med to NWE arb is now closed, should help NWE sellers... as no [cargo] inflow from the Med," a NWE gasoline trading source said.
The US market meanwhile has shrugged off the rising stock data released by the US Energy Information Administration that showed that total motor gasoline stocks rose 2.588 million barrels to 217.662 million barrels, for the week ended May 10.
"The US stocks lags behind," a European trader said.
The NYMEX RBOB crack versus ICE Brent crude futures meanwhile was trading at $16.70/barrel at 0957 GMT, up from around $16.21/b Thursday morning.
"The whole complex has rebounded including the RBOB," a trade source added.