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European Gasoline Bearish Amid Export Constraints: Kpler

OIL PRODUCTS

European gasoline remains “overall bearish” with “persistent length” and “inevitable export constraints” eventually limiting upside to regional cracks according to Kpler last week.

  • Tighter sulphur regulations in Belgium will align exported road fuel specs across ARA to three times less than the current Nigerian import specification.
  • Sustained gains in US cracks should be limited over the coming weeks by easing refinery turnaround activities from next week and poor implied demand.
  • Support is expected from the second half of March when refiners switch to summer specification gasoline production.

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