Goldman Sachs pivots to European gasoline futures for 2027, citing a supply squeeze caused by refiners prioritizing diesel production amid ongoing global refinery outages.
Goldman Sachs recommends long positions in European gasoline futures for mid-2027, citing refiners switching output from gasoline to diesel which is rapidly tightening gasoline markets.
Diesel markets remain at the epicenter of the fuel supply crunch with refinery outages 60% above seasonal average, and tightness is expected to extend into next year.
Goldman Sachs analysts are pivoting their fuel market strategy, recommending long positions in European gasoline futures for mid-2027. While diesel remains at the epicenter of a global supply crunch due to refinery outages 60% above seasonal averages, the bank notes that refiners prioritizing diesel production are rapidly tightening gasoline markets, creating superior upside potential.
While diesel remains in a supply crunch, the bank believes gasoline offers more upside potential because refiners are currently prioritizing diesel output, which is causing gasoline markets to tighten rapidly.