US Gasoline Pump Prices High Despite Bearish Crack Spreads

Gasoline cracks continue to trend lower on weak demand after the end of the peak summer season although US pump prices remain high due to the rising prices of the wider oil market.

• The US gasoline front month crack spread is down from about 26.5$/mt on 14 Sep to 11.2$/mt amid low demand after the end of the summer driving season. EIA data showed gasoline four week average demand falling again this week and still near the five year range lows.
• California Governor Gavin Newsom has directed the state’s Air Resources Board to allow the typically cheaper winter-blend gasoline early as retail prices rise above 6$/gal. Winter-blend gasoline is typically allowed only after 31 Oct when cooler weather slows evaporation of more volatile ingredients that cause smog.
• California’s average gasoline retail price of $6.032 a gallon according to AAA data is almost 2.2$/gal above the national average. The national average is also at the highest level ever for this time of year.
• California RBOB inventories are 9.6% above the five-year average for this time of year according to CARB data.
  • RBOB NOV 23 down -0.6% at 2.45$/gal
  • EU Gasoline-Brent down -0.7$/bbl at 9.9$/bbl
  • US gasoline crack down -0.9$/bbl at 11.26$/bbl