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USGC Spot Gasoline Discount Hit Decade Wide

OIL PRODUCTS

Spot gasoline prices in the USGC has fallen to their widest discount to futures in a decade amid a bifurcation in physical and paper markets, according to Bloomberg.

  • The discount reflects the rising supply in the region as excess gasoline is produced while refiners seek to maximise diesel yields, Bloomberg said.
  • Seasonal stockpiles have been on the rise due to weak domestic and export demand.
  • Conversely, paper markets have been impacted by the uncertainty around the Israel-Hamas conflict and potential supply shocks. Gasoline futures have tracked other oil prices in trading higher due to the geopolitical risk premium.

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