Tightening arbitrage options and wider balances challenge EBOB outlook

Commentary summary:

– Minimal impact on gasoline markets after U.S. elections and recent crude correction

– Gas-nap climbs $10/mt during the week while reformate prices rose $6/mt in Europe, recovering after hitting recent lows at the beginning of November.

– Higher runs are expected in the US exerting pressure on RBOB and EBOB.

– Singapore’s cost advantages now make it an appealing supplier to the East and the Middle East.

The gasoline market has had a calm week, not significantly affected by the U.S. elections, nor has the recent correction in crude strongly impacted crack spreads.

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.

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