Navarik Market Update
April 20, 2017
PADD 5 gasoline demand continues to grow going into peak season with local supplies unable to meet demand, resulting in marketers relying on gasoline imports. Navarik’s proprietary dataset indicates that two cargoes sailed from Europe to the U.S. West Coast, the first having arrived in late March and the second expected to arrive during week ending April 21.
EIA data shows that LA gasoline retail spot prices are up 10.6% month-over-month. Meanwhile, consumer prices in Europe remained relatively stable with the Euro and the Pound falling slightly during this period, increasing the trade margin. PADD 5 inventories for the week ended Apr 14 had a larger than expected build due to recovering local gasoline production. Navarik will continue to monitor gasoline imports into PADD 5 to determine if stocks are expected to continue to build in the coming weeks.
Figure 1: EUR 28 Weighted after-tax consumer prices per 1000L
Figure 3: GBP/USD, 12 months
Figure 4: EUR/USD, 12 months
Colin McCann is an Oil & Gas analyst with Navarik Corporation. The Navarik Data Products team analyzes Navarik's proprietary data sets and external sources to provide insights into the oil & gas shipping market. The resulting analysis enables physical and paper traders to see ship movements across the barrel before anyone else in the market.
A list of current available trade flow reports can be found here.