Physical realities finally caught up with EBOB market whilst Sing pushes higher

Commentary summary:

• March E/W rally continues as EoS market looks well supported vs a European market that ran out of levers to pull

• Sg92 spreads have been rallying consistently over the last month, but component premia are starting to soften in a sign that we’ve likely hit a ceiling

• AG looks very attractive to lift gasoline cargoes from in the prompt, and we would expect to see more loadings out of the region helping to lift TC5

• Q2 RBOB Arb has been looking more attractive, with TC2 rising to eat up much of the upside in the TA Arb over recent weeks, as PADD-1 is currently pricing as a viable outlet for ARA again from mid-March

The biggest mover in the global gasoline market over the last week or so has been the EoS, with Sg92 spreads rallying and dragging the E/W spread higher in the process.

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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