European Gasoline crack spreads trended downward as exports to Nigeria fell in August by 16 thousand barrels per day (tb/d) to 0.30 million barrels per day (mb/d), according to OPEC in the latest Monthly oil market report.
Crack spread refers to the overall pricing difference between a barrel of crude oil and the petroleum products refined from it.
Futures and options traders can also use the crack spread to hedge other investments or speculate on potential price changes in oil and refined petroleum products.
Many of the arriving Petrol shipped to Nigeria were held in floating storage towards the end of the month.
“Gasoline floating storage in Nigeria grew by 3.68 mb to 5.16 mb in the last week of August, indicative of excess gasoline availability and limited European gasoline requirements,” the report said.
The gasoline crack spread averaged $8.63/b in August, down by $2.20 m-o-m and $10.18 y-o-y.
US gasoline crack spreads remained flat in August, pressured by lower consumption over the month as the summer season is slowly coming to an end and driving activity eased.
Exports to Nigeria may also have been weak as the Government removed petrol subsidies which has led to lower demand.
Download full report here.
