Gasoline refining margins in north-west Europe slipped on Tuesday as a drop in US gasoline prices put the arbitrage flow west in doubt. The head of the Renewable Fuels Association said on Tuesday that US President Donald Trump's administration would lift the responsibility for fuel blending off refiners, which had long requested this change to the nation's biofuel program.
Prices of renewable fuel credits slumped on the news, with (D6) Renewable Identification Number (RIN) credits for 2017 dropping as low as 30 cents apiece, traders said. US gasoline futures slid by nearly 3.5 percent, as a result, which could crimp the arbitrage flow from Europe. China's commercial oil products inventory jumped more than 10 percent from December to 17.9 million tonnes, the highest level since July, the official Xinhua news agency said on Wednesday.
The gains were largely in diesel stocks, which rose 39.2 percent on the month to 8.16 million tonnes. Gasoline inventories fell to 7.37 million tonnes. At least 9 cargoes had been booked since Friday to sail from Europe to West Africa, the US East Coast and South Africa, according to shipping data. No barges of benchmark European gasoline traded in the afternoon window. A bid emerged at $532 a tonne fob ARA, down from $547 a tonne on Monday.
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