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NGLs Week is PetroChem Wire's comprehensive summary of price trends, upstream and downstream costs, operations news and supply/demand forecasts. The report contains everything you'll need to understand what's happening in the NGL markets.

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Gasoline, octane prices remain depressed amid peak demand period

HOUSTON, July 22, 2016 (PCW) -- Gasoline and octane values fell again early Friday, as sellers resigned themselves to weakness in the part of the year where gasoline is most in demand.

“Summer is over,” sighed one trader.

Aug NYMEX RBOB was off 0.28 cpg at 135.22 cpg at 10:43 am Central; the CBOB price in the Gulf Coast was about 128.50 cpg, down about 1 cpg.

The NYMEX front-month gasoline settle has dropped just over 16 cpg since July 1. CBOB prices in the Gulf Coast have fallen 11 cpg during the same time frame.

Octane values are softer as well. On Friday morning, the CBOB 87-93 spread fell 1.25 cpg to 12.25 cpg.

According to PetroChem Wire historical price data, the CBOB 87-93 spread on July 1 was 18.00 cpg. In contrast, last year at this time, it was 36.50 cpg.

All octane boosters, which trade at a differential to gasoline, have come off this month. Alkylate has dropped 6 cents to gasoline plus 8 cpg; and reformate has come off 8 cpg to gasoline plus 28 cpg.

The exception to this has been toluene and mixed xylenes, which have been relatively stable, driven by demand to sectors other than gasoline blending. -- Robert Sharp.

Read Robert's blog that explains the market fundamentals behind gasoline's weakness here.

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