– June premium up $5 at $90/mt
– Arb to US Gulf open on paper
The May premium for European Toluene Prices over Eurobob gasoline was stable on Thursday at $115/mt. June ticked up $5 to a premium of $90/mt, based on indications from a trader that saw a much thinner premium between the prompt end of the Market and later on. A fall in gasoline Toluene Prices on Thursday caused the arbitrage window to the US to open on paper, as the spread between the toluene CIF ARA assessment and arrival date US Gulf prices showed a difference of roughly $50/mt — generally considered workable by traders. Fundamentally, sentiment pushed against the higher premium, as a trader said the Market was much more in balance, with Mediterranean producers back online and cargoes offered for both May and June delivery. These offers were heard earlier in the week at a premium of $130/mt (Toluene Prices), however, and not yet workable.
S&P Global assessed the CIF ARA Toluene Prices over Eurobob gasoline at $115/mt for May on Thursday, stable from Thursday. A bid of $114/mt by Total was outstanding after the Market on Close assessment process. The June premium was assessed $5 higher at $90/mt (Toluene Prices), due to indications of a narrower spread between the months from a trader.