…New pricing improves transparency and offers increasing visibility of intraday swaps values
Global energy and commodity price reporting agency Argus has launched new intraday prices for European gasoline which complement existing benchmark Eurobob (EBOB) full-day assessments.
Argus’ intraday Eurobob prices are assessed at four times during the trading day (09:30, 12:00, 14:00 and 16:30 UK time), providing the market with snapshots of European gasoline values. The new snapshot prices use the latest information from the fob AR (Amsterdam-Rotterdam) spot gasoline barge market and real-time Eurobob swap values.
The new intraday price assessments will help market participants track the price of gasoline in Europe more closely through the trading day, improve risk management strategies and allow for simpler comparison with other global gasoline pricing markers, such as RBOB in the US and Argus’ newly launched MEBOB price in the Mideast Gulf.
Demand for intraday price assessments has come from wholesale and downstream market participants, particularly in west Africa, where deals referencing Argus’ Eurobob gasoline prices are becoming increasingly prevalent.
Argus assesses both non-oxy and oxy grades of Eurobob gasoline during the day, to meet continued interest in the trade of blendstocks for both E10 and E5 gasoline in Europe and beyond.
Argus Media chairman and chief executive Adrian Binks said: “We are pleased to respond to requests from market participants to introduce intraday prices for our important EBOB gasoline benchmarks. The price series has been adopted as the gasoline price reference across Europe, forms part of an important global gasoline complex and is increasingly being used as a reference in key west African products markets, such as Nigeria”.
The Argus Eurobob non-oxy barge price sets the outright value of gasoline in Europe each day and is used as the settlement basis for futures contracts listed by Ice and CME. The price represents the value of physical barges of E10 gasoline blendstock prior to the addition of ethanol, which creates finished gasoline for retail sale. The Argus Eurobob oxy barge price is the key gasoline benchmark in Europe, and is used as the settlement basis for futures contracts listed by Ice and CME. It represents the value of E5 gasoline blendstocks.
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