Mideast Gulf Gasoline Premiums at Four-Year Low: Argus

Gasoline premiums in the Middle East fell to lows last recorded during the Covid-19 pandemic as the region became oversupplied amid high refinery runs, Argus said.

• The 92R Mideast gasoline premium fell to a four-year low of $1.80/b May 27, while the backwardation structure has also narrowed.
• Refinery runs in the region have been high with seasonal maintenance drawing to a close.
• Gasoline exports from the Middle East typically head to Pakistan and East Africa, but there have been unusual flows West of Suez, Argus said.
• 189k mt of Saudi gasoline arrived in the Netherlands, Latvia, and Belgium in April, the highest level since May 2019, Kpler said.
• While heavier refinery maintenance in Europe may have led to such flows, high freight rates and weak European demand should keep this arbitrage window closed
• Cargoes were also flowing to Singapore, importing 190k mt of Middle East gasoline.