USGC C5 tumbles to lows not seen since 2008

OREANDA-NEWS. August 27, 2015. Declines in the crude and RBOB gasoline markets have pushed natural gasoline values to lows unseen since December of 2008.

EPC natural gasoline tumbled to a low of 76.5?/USG today, shedding 2.5? from the previous day's fresh new low. During the same time, RBOB gasoline shed 8.37?/USG to \\$1.3549?/USG, and WTI was down to \\$38.60/bl.

Although natural gasoline tumbled to fresh new lows, its value relative to RBOB has firmed since the start of the week. On Monday, natural gasoline stood at 53.7pc of RBOB but settled out today's session at 56.35pc amid talk of an uptick in Canadian diluent demand.

However, natural gasoline at the US Gulf coast has lost value relative to the crude market. On Monday, EPC barrels stood at 86.77pc of WTI, and fell to 83.24pc today.

Product spreads with EPC butane, a gasoline blending component for the winter season, have priced natural gasoline at a 28.75-31? premium to butane, narrowing each day.

The differential between the two blending components have not been that narrow since 30 January.