Rising Gas-Nap strengthens EU blending economics

Commentary summary:

• Gas-nap sees significant gains, adding $40/mt this month due to strong gasoline market performance.
  
  
• Blending costs in USGC drop, supporting export economics and the RBOB complex.
  
  
• USGC competitiveness rises in LATAM, particularly in Colombia and Ecuador, for mid-December arrivals.
  
  
• Saudi gasoline exports reach a 6-year high, easing tightness in the Asian market.

Gasoline cracks continue to rise down the curve amid increased geopolitical risk, despite sluggish demand data. The indicator with the largest upward movement in recent weeks remains the gas-nap, which has already gained $40/mt this month, driven by a gasoline market that continues to outperform a free-falling naphtha with limited international arbitrage opportunities on the horizon.

Jorge Molinero is a Commodity Owner at Sparta. Starting his career as a financial analyst with BBVA, Jorge quickly transitioned to market intelligence within the energy sector, spending 4 years as a naphtha analyst with Repsol before joining Sparta in early 2023.

Sparta is a live, market intelligence and forecasting platform that enables oil traders, refiners, banks, hedge funds and wholesalers to have access to real-time and global actionable insights to capture market opportunities before others.

To find out how Sparta can allow you to make smarter trading decisions, faster, contact us for a demonstration at sales@spartacommodites.com