Goldman Sachs lowers its diesel spread forecast, turning bullish on European gasoline, as refiners squeeze gasoline output to compensate for tight diesel supply.
Goldman Sachs noted in its latest report on September 16 that the global fuel market tightness is spreading from diesel to gasoline. Refiners, in an effort to address tight diesel supply, have increased diesel production, which has squeezed gasoline supply and could further widen the supply-demand gap in the gasoline market. Based on this change, Goldman Sachs adjusted its commodity trading strategy, closing its previous positions betting on widening diesel spreads and instead recommending going long on mid-2027 European gasoline contracts, believing that gasoline currently has greater upside potential.
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