Gasoline refining margins declined on Wednesday following a strong rally in crude prices but a draw in US inventories raised expectations for stronger exports to the United States from Europe. US gasoline stocks dropped last week by 3 million barrels, compared with analysts' expectations in a Reuters poll for a 227,000-barrel drop, according to EIA data.
Only two 60,000 tonne tankers were storing gasoline off the coast of northwest Europe, down from as much as 400,000 tonnes of floating storage earlier this month, according to traders. Exports from Europe to the US East Coast remained relatively low due to weak arbitrage economics but activity was expected to pick up ahead of the summer and as US inventories decline, traders said. Iran will halt gasoline imports from September, ISNA news agency quoted the oil minister as saying on Monday, as the country aims to achieve self-sufficiency by increasing production of the motor fuel.
Chinese refineries processed a record of more than 12.1 million barrels per day (bpd) of crude oil in March, boosted by abundant government import quotas and steady margins. Global energy giants Chevron Corp and Exxon Mobil have asked US regulators for exemptions to the nation's biofuels policy that have historically been reserved for small companies in financial distress, said sources familiar with the matter.
There were no trades of eurobob gasoline during the afternoon trading window. There were no bids or offers. Elsewhere, 8,000 tonnes traded at $684-$687.50 a tonne fob ARA, compared with $678 and $680 fob ARA in the previous session. NIC and Total sold to Trafigura and Vitol.
No barges of premium unleaded gasoline traded. The May swap stood at $690 a tonne at the close, compared with $681.50 a tonne on Tuesday. The benchmark EBOB gasoline refining margin slipped to $8.28 a barrel from $8.935 a barrel. Brent crude futures rose $1.27 to $72.85 a barrel by 1547 GMT.
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