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European Gasoline Crack Spread Trades Negative

OIL PRODUCTS

The front month European gasoil margin turned negative and lowest since the start of September.

  • The Eurobob gasoline fob brg rot spread to ICE Brent traded down to -0.36$/bbl late yesterday before recovering back to parity.
  • Strong supplies and high refinery output following the return of facilities from seasonal maintenance is combining with weak demand and high inventory levels to push the gasoline crack lower. At the end of October the front month spread was trading as high as 9.5$/bbl.
  • Insights global ARA gasoline stocks were last week reported at 45% above the five year average and the highest at this time of year since at least 2008.

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