In our latest gasoline market commentary:
> Increasing freight costs out of the US position Europe as the cheapest source of supply for new outlets, including Canada and several Latin American destinations
> These new alternatives to arbitrage from ARA will stimulate the EBOB complex in the short-to-medium term and provide a floor to timespreads and blending components
> Cracks rebound supported on bearish crude market, but timespreads continue weakening, with SING 92 plunging into contango in the prompt
> The RBOB arb continues to show a pessimistic outlook, with a worsening margin due to the progressive fall of European gas-nap, which continues to weigh [PJ1] on the economics of blending [PJ1]If it “weigh’s” then it’s already down. Don’t need both
