Goldman Sachs Recommends European Gasoline as Diesel Market Tightens
Goldman Sachs has shifted its fuel market recommendation from diesel timespreads to European gasoline for the middle of next year, citing tightening gasoline markets due to refiners prioritizing diesel output. The investment bank notes that global refining activity is at one of the lowest levels since the pandemic and that refinery outages in the Middle East and Russia have significantly reduced diesel supply. While diesel remains central to a fuel supply crunch with prices expected to rise further, Goldman sees greater upside potential for gasoline as refiners shift production away from it. The bank's analysts highlight record-high refining margins due to tighter product supplies compared to crude oil availability. They also note that global diesel stocks are running low and refinery outages have been 60% higher than the seasonal average through August, with tightness expected into next year. Goldman Sachs now advises investors to take long positions in European gasoline futures for mid-2027.
Tickers: $GS
Topics: Commodities Market Diesel Gasoline Refining Industry