CS Energy Gasoline July 2013

Commodity Spotlight Energy

US environmental policies could make gasoline more expensive in Europe as well

We have seen the strongest week-on-week increase in US gasoline prices in five months in mid-July. One reason was the significant increase in prices for ethanol credits. Demand for these credits is growing as fuel blend requirements are tightened and fuel demand weakens. Next year, the critical blend wall of 10% for gasoline sold in the US could be reached. US refineries might therefore try to step up their gasoline exports. As a result, European refineries might come under pressure and reduce their processing capacities. Gasoline prices in Europe might rise as a result.
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