June US benzene contracts have settled 8 cents lower from May's settlement at $2/gal ($598/mt), sources said Tuesday.
Both Phillips 66 and ExxonMobil settled contracts at that level, according to sources.
The contract number was a little lower than some market expectations of $2.02-$2.05/gal.
The US benzene market has been under pressure despite crude gains because of ample inventories, sources said. Supply is expected to tighten in June because of closed arbitrages to the US, sources added.
The US, a net importer of benzene as production isn't enough to satisfy demand, has been the cheapest priced region for too long and this also supports tighter supply in the short term, a source said.
US June benzene was talked in a range of $1.95-$2.03/gal FOB US Gulf Coast, and was last assessed Friday at $1.97/gal FOB USG and at $1.94/gal DDP USG.
