Cracks for Mediterranean gasoline down $0.50/b after start of US driving season

London (Quantum Commodity Intelligence) - Cracks for gasoline in the Mediterranean remained depressed Thursday ahead of the release of the US weekly oil statistics by the Energy Information Administration, failing to regain last week's levels amid record high RIN prices, broker data shows.

July cracks for premium unleaded gasoline were pegged at $8.57/b at 0930 UK time, down $0.52/b from May 28.

July RBOB cracks were also softer than May 28, down $0.15/b, broker data shows.

"The arbitrage from the Mediterranean to the US is open, and barrels are moving, but we are moving from being very long to just slightly long as demand in Europe starts to improve," said one trader.

"Greece was very long a month ago, but now looks like it may not have barrels to export because domestic demand is picking up."

Average pump prices for gasoline in the US were $3.02/gal, before the Memorial weekend, the highest price before the public holiday since 2014, according to the US Energy Information Administration.

Gasoline prices in some US markets have been more than $3.00/gal for several weeks, the agency added.

California had the highest price, at $4.01/gal, on May 24.

Record high RIN prices has added to the retail price of gasoline, driven by demand for agricultural feedstock.

Corn fuel ethanol D6 RIN prices reached $1.90/gal on May 18, and biomass-based diesel D4 RIN prices reached $2.00/gal, both marking all-time high daily prices in the Renewable Fuel Standard program.

Refiners and importers of gasoline and diesel have to comply with RFS by producing or buying RINS.