[ad_1]
A confluence of factors — including an abundance of supply and a lack of committed buyers — have driven the premium for high-octane RBOB on the Atlantic Coast to its weakest point in nearly eight weeks, market sources said Tuesday.
The spread between regular RBOB and premium RBOB narrowed 1.45 cents Tuesday to 12.4 cents/gal, its weakest level since September 29, when the spread between the two was 12.25 cents/gal, S&P Global Platts data shows.
Premium RBOB was assessed 21.7 cents/gal above regular RBOB on November 11, its highest point since March 24, when the spread between the two was 25 cents/gal. The spread between the two blendstocks has fallen for six of the last seven trading days. The spread between regular and premium RBOB has drifted down in response to an abundance of supply and relatively little demand, an Atlantic Coast gasoline trader said Tuesday.
The extra supply on the market is seen from European imports, which have surged over the last two weeks, he said.
Article continues below…
«Euro grade and PBOB (premium RBOB) are coming from Europe which is bearish for PBOB [on the US Atlantic Coast],» he said.
In addition, Philadelphia area refineries — PBF Energy and Philadelphia Energy Solutions — were seen selling premium RBOB in recent sessions.
«That isn’t helping the market either,» he said.
The trader said he sees room for the market to fall further, adding that buyers will likely step into the market aggressively if the spread between the two grades falls to 10 cents/gal.
–Keefe Borden, keefe.borden@spglobal.com
–Edited by Jason Lindquist, jason.lindquist@spglobal.com
[ad_2]
Fuente