The European gasoline market largely disappointed most gasoline bulls who were awaiting a repetition of the record-high strength observed in the summer of 2015. Despite signs of healthy demand in the US, arbitrages from the net-long European gasoline market have suffered, as stocks levels in the US — whose summer driving season is typically expected to provide bullish support to the global gasoline complex — remained high. As one gasoline trading source said, “This year it is a big disappointment for gasoline — demand is there, but stocks are just too high,” adding that the market had become “difficult to follow,” due to the non-seasonal behavior of gasoline fundamentals in the summer of 2016. HIGH STOCKS BRING BEARISH MOOD Market sentiment has largely revolved around the high volumes in the market, with ample supply pressuring values of gasoline globally. With refining margins largely positive, due to a strong performance […]