LONDON, July 6 - European gasoline prices fell
below $600 a tonne on Monday, pressured by lower exports to the
United States and the Middle East and a drop in crude futures. Prices were down about 2.5 percent to around $585 a tonne,
with news Saudia Arabia's imports, most of which come from
Europe, are expected to fall by 40 percent in July. Brokers said lower demand out of the Middle East was adding
to concerns created by lacklustre domestic consumption and
rising inventories of the motor fuel in the United States. "Gasoline needs a pick-up from the U.S. inventory numbers
later this week, otherwise we're going to see European prices
continue to fall," one broker said. On the swaps market, European gasoline barges flipped back
into contango -- with July prices trading at a discount to
August, suggesting the balance in Europe between supply and
demand is not particulary tight.
below $600 a tonne on Monday, pressured by lower exports to the
United States and the Middle East and a drop in crude futures. Prices were down about 2.5 percent to around $585 a tonne,
with news Saudia Arabia's imports, most of which come from
Europe, are expected to fall by 40 percent in July. Brokers said lower demand out of the Middle East was adding
to concerns created by lacklustre domestic consumption and
rising inventories of the motor fuel in the United States. "Gasoline needs a pick-up from the U.S. inventory numbers
later this week, otherwise we're going to see European prices
continue to fall," one broker said. On the swaps market, European gasoline barges flipped back
into contango -- with July prices trading at a discount to
August, suggesting the balance in Europe between supply and
demand is not particulary tight.
