The spread between premium unleaded Mediterranean gasoline cargoes and Eurobob flipped from a premium this week for the first time since September 25 on low demand for higher RVP specification material.

The spread flipped to a discount of $2.75/mt Monday from a premium of $1/mt on Friday. On September 25 Med cargoes were at a discount of 3.50/mt to Eurobob.

While the Mediterranean gasoline market is currently supported by increased demand from North Africa and an open arbitrage to the Persian Gulf, most demand is concentrated around lower-RVP intermediate specifications, thus pointing to a lower demand for the higher-RVP (90 kPa) gasoline specification Platts assesses.

"I think that the Med mogas is going through some tightness of low RVP material, due to the unexpected Algerian tender. Algeria requires 70 KPa. That is very difficult to find at this time. There is zero demand for the usual Winter EN228 (90 KPa), with very low demand for 80 KPa and higher-than-usual interest for 70 and 60 KPa (Algeria is 70, Egypt 69 and Jordan is 60)," said one source.

"Now, only Italy and Slovenia will accept 90 kPa," another source added, pointing to low demand in the Mediterranean for higher-RVP winter specifications.