LONDON: Gasoline refining margins in northwest Europe rose slightly on Monday as supplies were expected to tighten after refiners slashed output in recent weeks.
In the prompt market, gasoline was still well supplied as exports to the US East Coast fell last week and cargoes were moving into northwest Europe from the Mediterranean.
Gasoline and components supplies were expected to tighten in July as European refineries decreased output in the face of multi-year low profits.
"Med volumes are flowing north but the north has run cuts and decided not to play in the export market," a trader said.
Supplies in the Mediterranean were also expected to tighten with refinery run cuts and as Algeria was expected to announce the results of its third quarter tender to buy 7 cargoes of gasoline in the coming days, traders said.
The naphtha market remained well supplied as less was used for blending into the gasoline pool. At the same time, the arbitrage to Asia was limited, putting further pressure on prices, traders said.
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