E/W spread drives global gasoline flows amid East strength

Commentary summary:

• Western gasoline markets remain under pressure on US inventories building and weak RBOB arbitrage margin.

• USGC remains the best source of supply into Latam markets and now also to Mexico (Rosarito) after E/W rally.

• European blend margins improve as reformate, C5, and alkylate costs fall.

• Singapore’s Sing 92 and E/W hit fresh seasonal highs, supported by tight light ends stocks.

Gasoline markets in the West failed to find support from the recent BP refinery outage and the moderately low PADD 1 inventories.

After a promising start to June, the market is falling again, and EBOB and RBOB timespreads are trading below their historical average following last week’s correction.

Philip Jones-Lux is Senior Analyst for Sparta. Having worked with organisations such as JBC Energy and RP Global, Philip is a seasoned energy market analyst with expertise across the oil barrel and power markets

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