The shockwave from last week's catastrophic earthquake in Japan has hit Europe's gasoline market hard (p1). Gasoline crack spreads have collapsed to almost zero after the quake wiped out at least one-quarter of Japan's massive petrochemicals demand, pushing unwanted European and Mideast Gulf naphtha into the already oversupplied Atlantic Basin gasoline pool. European gasoline benchmark Eurobob barges had been trading at a near-$2 per barrel premium to Brent crude before Friday's quake. By Tuesday the spread was just 15￠, while naphtha margins were trading at a two-year low of minus $7/bbl.
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