The Octane Premium Squeeze

With wholesale gasoline crack spreads at multi-year highs, the premium for toluene as an octane booster has widened. Chemical solvent manufacturers are being outbid by refiners for available spot volumes.

Maintenance Impact

Planned turnaround schedules at major US reformers have exacerbated the supply shortage. Traders do not expect a price correction until late June when extraction capacity returns to normal levels.