Physical market remains tight globally as high octane component premiums reach new heights

In our latest gasoline market commentary:

> TA arb shut and both ARA and USGC pricing to minimise outflows on tight finished product markets 

> Spreads and cracks have largely plateaued at very high historical levels over the last week, with the Asian market also now responding to strong Atlantic Basin pricing 

> Relative pricing indicates that the crude barrels Europe has replaced Russian Urals with are struggling to provide the heavier naphtha cuts required to produce sufficient volumes of higher octane components 

> With little besides a marginal relief in the amount of offline refining capacity on the near-term horizon, gasoline pricing look set to remain strong through August before seasonal demand declines can provide some respite