LONDON: Benchmark gasoline refining margins in northwest Europe rose on Monday, supported by a rise in US cracks due to tighter supplies and stronger demand in the key market.
Buying activity in Europe was weak earlier in the day, with traders reporting slower demand from West Africa.
Gasoline stored in tanker ships off the coast of West Africa spiked to a four-month high in the week to July 14, according to data from industry monitor Genscape.
Demand had been slow in the United States, but there were hopes to would pull in more amid tightening supply.
US gasoline margins rose to the highest in nearly three months on Monday amid stockpile drawdowns and signs of improved demand for the motor fuel, traders said.
Gasoline exports from northwest Europe to North America have increased over the past week to above 500,000 tonnes from around 400,000 tonnes the previous week, according to Reuters shipping data. GASOLINE
No barges of eurobob oxy gasoline traded in the afternoon trading window. Bids emerged at $508-$509 a tonne fob ARA.
Outside the window, some 8,000 tonnes of eurobob barges traded at $509 a tonne fob Amsterdam-Rotterdam, compared with $497.50-$507.50 a tonne on Friday. Gunvor sold to Shell, Trafigura and Varo.
Castleton sold to Total two barges of premium unleaded gasoline at $516 a tonne fob ARA, up from $513 a tonne.
The August swap stood at $508.50 a tonne at the close, up from $505.50 a tonne.
Brent crude futures were down 23 cents a barrel at $48.68 a barrel at 1540 GMT.
The benchmark ebob gasoline refining margin rose to $12.51 a barrel from $12.11 a barrel.
US front-month RBOB gasoline futures were up 0.21 percent at 1.5635 a gallon.
The RBOB crack versus US crude stood at $19.42 a barrel, up from $18.80 a barrel.
NAPHTHA
Glencore sold to Castleton one cargo at $419 a tonne cif NWE for August 7-11 delivery.
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