Atlantic Basin Gasoline Is Less Tight But Risks Remain: Energy Aspects

Tightness in the Atlantic Basin gasoline market caused by refinery disruption has eased as US refining capacity is returning to operations, Energy Aspects said in a note.

• Risks of a tighter market remain amid the upcoming hurricane season and above expectation summer demand, the note said.
• The European market has “very little buffer” in case of unplanned disruption, as wide-open transatlantic arbitration economics impeded stock builds, it added.
• Energy Aspects also warns about Rhine River levels that have been affected by drought conditions in recent weeks. “Interruptions to barge flows risk tighter octane availability at the ARA blending hub,” the note said.
• In the Middle East, “firm arrivals” of Russian naphtha are supporting gasoline blending, it said.