U.S. gasoline margins hit 1-year low on oversupply fears: traders | Reuters

U.S. gasoline margins fell by more than 11 percent early on Friday, hitting one-year lows as record inventories and signs of weakening demand dampen expectations and upend trade flows.The sharp drop in gasoline margins came as government data showed U.S. gasoline inventories reached record highs amid weakening demand at the pump. Trading houses such as Noble and Mercuria have meanwhile booked cargoes for a highly unusual route away from the gasoline-hungry U.S. East Coast to West Africa.The U.S. gasoline crack spread , a key indicator of refining margins, fell 11.2 percent to a one-year low of $9.50 cents a gallon in early trading on the New York Mercantile Exchange.U.S. gasoline demand growth will be lackluster this year largely because the United States reached full employment last year, Harry Tchilinguirian, BNP Paribas’ global head of commodity markets strategy, told the Reuters Global Oil Forum on Friday.

Source: U.S. gasoline margins hit 1-year low on oversupply fears: traders | Reuters

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