Gasoline refining margins in north-west Europe slipped lower on Friday, despite sagging oil benchmarks, on renewed fears over high stocks in the Atlantic Basin. Gasoline stocks in Europe's ARA hub rose 2.6 percent to 1.16 million tonnes, according to PJK International.
While the transatlantic flow of gasoline had resumed, following large draw of 6.56 million barrels in US gasoline stocks, traders said the route was still not profitable for most sellers. The gasoline crack declined in all major refining centers this week, according to Jefferies refining monitor, and high inventories are casting some doubt on whether there will be a summer rally in cracks.
Oil refiners shelled out a record over $2 billion to meet US biofuels requirements in 2016, a 70 percent surge that helps fuel a growing debate over who should shoulder the costs for meeting environmental regulations. China's independent oil refineries, known as "teapots", have sought to lobby the government to lift a ban on fuel exports, in a proposal made to the annual meeting of parliament this week, two refinery executives said on Friday.
China had suspended the grant of export quotas to independent refiners for this year, ending a year-old policy allowing some independents to sell diesel, gasoline and naphtha abroad and dealing a blow to the group. No barges of benchmark European gasoline traded in the afternoon window. Earlier in the day 8,000 tonnes traded at $497-$499 a tonne fob Amsterdam-Rotterdam, down from $500-$510 on Thursday. CCMA sold one barge of premium unleaded gasoline to Total at $506 a tonne fob ARA, compared with a trade at $506 a tonne on Thursday.The April swap traded at $530 a tonne at the close, down from $532 a tonne.
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