LONDON: Gasoline refining margins in northwest Europe fell for a second consecutive session on weak prompt demand and rising supplies as July buying interest emerged in the Mediterranean.
High inventories in the United States are putting pressure on the arbitrage from Europe, and demand on that front remains weak, traders said.
The end of industrial action in France and the return onstream of Total refineries there will augment the supply length in Europe.
Naphtha traders also noted a decline in demand for the feedstock from gasoline blenders in recent days.
"As pump prices in the United States will likely rise in the rest of 2016 and into 2017, growth momentum for gasoline should ease back to plus 2.1 percent in second half 2016.
This follows an estimated gain of plus 3.6 percent in first half 2016," the International Energy Agency said.
Algerian state oil firm Sonatrach issued a tender to buy 390,000 tonnes of gasoline in July and August, according to a tender document seen by Reuters.
It is seeking 150,000 tonnes of 95 RON unleaded gasoline into Algiers and 240,000 tonnes to Arzew and Skikda. Bids for the tender are due by June 21 at 1600 GMT and will remain valid until June 23.
GASOLINE
There were no barge trades in the window. Offers emerged at $498 a tonne.
Three barges of benchmark Eurobob traded outside the window at $496-$502 a tonne fob ARA, down from $504-$505 a tonne on Monday.
Litasco sold two to Mabanaft and Koch sold to Vitol.
Vitol and Varo each sold a barge of premium unleaded gasoline to Total at $504 a tonne fob ARA, down from Monday's $517 a tonne fob ARA.
The July swap stood at $501.25 a tonne at the close, down from $510.50.
Gasoline barge refining margins fell to $10.84 a barrel, from $12.09 a barrel on Monday.
Brent crude oil futures were down 61 cents a barrel at $49.74 a barrel at 1545 GMT.
US July RBOB gasoline futures was down 1.05 percent at $1.5200 a gallon.
The US gasoline crack was trading at $15.47 a barrel, down slightly from $15.62 on Monday.
NAPHTHA
BASF sold a cargo Shell $411 a tonne cif NWE during the Platts afternoon window.
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