LONDON: Gasoline refining margins gained nearly $2 a barrel on Monday after crude oil prices lost over 3 percent, while a recent resurgence in export demand to West Africa lent limited support.
Oil prices have been coming under pressure in recent weeks on concerns over supply abundance, with OPEC production hitting a record high last month according to a Reuters survey.
While arbitrage economics from Europe to the United States remain marginal, a recent uptick in demand for the motor fuel in Nigeria has helped clear up some of the supply overhang in Europe.
Hedge funds have turned very bearish towards both crude and refined products over the last two months amid signs of an oversupply of gasoline.
Hedge funds added an extra 6 million barrels of short positions in the main US gasoline futures and options contract.
Hedge fund net short positions in gasoline are exceptionally rare and this is the largest recorded net short since the current data series began in 2006.
China's implied gasoline demand rose 2.2 percent from a year earlier to 2.79 million barrels per day (bpd) in June, Reuters calculations using official data showed.
But output was also up, rising by 8.5 percent from a year earlier to 3.01 million bpd.
GASOLINE
Gunvor sold a barge to Vitol at $411 a tonne fob ARA, compared with bids and offer discussions on Friday at $412-$418 a tonne.
Another 10,000 tonnes traded throughout the day at 4411-$423 a tonne fob AR, compared with $411 a tonne on Friday.
Gunvor, Koch and Litasco sold to Shell, Rolympus, BP and Varo.
Rolympus sold five premium unleaded gasoline barges to Total at $430-$432 a tonne fob ARA, compared with trade on Friday at $433 a tonne.
Gasoline barge refining margins rose by around $2 a barrel to $9.98 a barrel.
The September swap stood at around $415 a tonne at the close, down from $418 a tonne.
Brent crude oil futures fell by $1.39 a barrel to cents at $42.14 a barrel by 1541 GMT.
US August RBOB gasoline futures were down 1.88 percent at 1.2946 a gallon.
The US gasoline crack was trading at $14.15 a barrel, up by around $1 a barrel from Friday.
NAPHTHA
No cargoes traded.
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