Lates News

Goldman Sachs Group Inc. said gasoline prices are poised to rise further as tightness in the global fuel market spreads. The bank has adjusted its trading strategy, shifting its focus from diesel to the widely used motor fuel. "The key reason behind this new recommendation is that refiners are shifting production away from gasoline toward diesel, which is causing the gasoline market to tighten rapidly," analysts including Yulia Zhestkova Grigsby and Daan Struyven said in a report. In their Sept. 16 report, the analysts said that while diesel prices may still rise further, gasoline currently offers a "greater opportunity for price upside," citing reasons including more resilient demand and relative changes in inventories. As a result, the bank closed out a previous trade on the price spread between different diesel contracts, known as a time spread, and recommended establishing a long position in European gasoline targeting mid-2027.