European gasoline prices surge, backwardation widens and cracks rally

Quantum Commodity Intelligence - Gasoline prices and cracks have surged in Europe amid the peak of the US driving season, Quantum data showed Monday.

Eurobob E5 barges in ARA gained $9.75/mt ($1.17/b) to reach $735/mt ($88.24/b) at 1630 London time, extending a rally since May 19 that has seen FOB prices rise in the trading hub $106.75/mt ($12.82/b).

A week ago, Eurobob was trading flat to the August paper.

After dropping to around $7.70/b mid-June, spot cracks for Eurobob E5 barges have now rallied to around $11.40/b.

Summertime gasoline Eurobob paper cracks also saw strong gains Monday, but longer dated cracks from October onwards were little changed.

Earlier, Spot cracks for RON 92 basis FOB Singapore versus cash Brent rose above $9/b on Monday by 1630 Singapore time for the first time this year.

The 4th of July holiday break, (from July 1 to July 5) was expected to be the second busiest Independence Day on US roads on record, according to the American Automobile Association, with a total of more than 47 million Americans slated to take trips.