The EBOB complex rebounds on Dangote issue, but will it be enough to sustain an upward trend in the medium term?

28 January 2025 Time to read:  minutes

 

Commentary summary:

• A leak in Nigeria’s catalytic cracker drove bullish sentiment in Europe, boosting EBOB spreads and cracks.

• Reformate, MX, and toluene prices hit new year-to-date highs, tightening European pricing.

• February E/W values rebounded after a $2/bbl drop the week before. Weak refining margins in the East keep suggesting that market could become tighter in Feb.

• The TA arb dropped by over 5 cpg since mid-January, currently reaching historical lows at 2 cpg.

Last week, our analysis focused on the sharp correction seen in the E/W, where February values had dropped by almost $2/bbl in recent sessions, despite fundamentals pointing in the opposite direction.

Crude Book a Demo

 


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

Sparta Market Outlook - Free Trial

Sparta’s Market Commentary is exclusively available within the Sparta Market Outlook app. To access a 21 day free trial of Sparta Market Outlook, please click the link below.

Market commentaries will be moving permanently into the Sparta Platform, alongside several new and exciting knowledge and insight features.

Book a demo to see how Sparta enables you to trade with conviction

general-cta-graphic
general-cta-graphic