US toluene and mixed xylene blend values have surged to start the week, gaining nearly 19 cents/gal Tuesday to be estimated at 209.39 and 210.25 cents/gal, respectively.
Blend values for both products were at their highest level since June 2, when the respective estimates were at 209.76 and 210.72 cents/gal, according to S&P Global Platts data.
The gains seen Tuesday were driven in part by a significant jump in NYMEX RBOB futures, which gained 3.92 cents to settle at $1.5962/gal. RBOB futures have risen 9.38 cents/gal so far in July, and August futures quotes were up slightly at time of publication Wednesday following another round of favorable US Energy Information Administration data.
EIA data for the week ended July 21 showed a 1 million-barrel decrease in total motor gasoline inventories. EIA data last week showed a 4.4 million-barrel draw in inventories. The gains in blend value were further supported by widening spreads between premium- and regular-grade gasolines.
Should blend values remain strong, this could bolster demand for aromatics as octane boosters, sources said. The spread between commercial-grade toluene, last assessed at 197 cents/gal, and toluene blend values was at 13 cents/gal, while the spread between nitration-grade toluene and blend value was at 10 cents/gal. For mixed xylene, that spread was closer to 5.39 cents/gal.
