European gasoline margins fall on slower exports
LONDON: Gasoline benchmark refining margins in northwest Europe declined on Tuesday for a second session, weighed by slowing exports to the US East Coast.
The arbitrage from Europe to the US East Coast was marginally open but tanker bookings were limited as traders were wary of slowing demand in the key hub.
Motorists logged 272 billion miles on US roads and highways in March, a 0.8 percent increase from last year, according to data released Tuesday by the US Department of Transportation.
Around 400,000 tonnes of gasoline and blending component are expected to head from northwest Europe to China in May, a marked increase from the previous months, traders said.
The global oil market is rebalancing and the pace at which supply and demand are falling into line is picking up, even if inventories still fail to reflect the impact of OPEC supply cuts, the International Energy Agency said on Tuesday.
Saudi Arabia’s state-run oil company Saudi Aramco said on Tuesday it had signed a joint development agreement with Chinese defence conglomerate China North Industries Group Corp (Norinco) for a refining, petrochemical and retail project.
Gunvor sold to Shell one barge of benchmark Eurobob gasoline in the afternoon trading window at $534 a tonne fob ARA .
Elsewhere, 2,000 tonnes changed hands at $538 a tonne fob Amsterdam-Rotterdam, compared with $534-$541 a tonne on Monday.
There were no trades of premium unleaded gasoline. An offer emerged at $545 a tonne fob ARA.
The June swap stood at around $536 a tonne at the close, little changed.—Reuters
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