Argus fob Mideast Gulf Gasoline (MEBOB)
Overview
Refining capacity in the Mideast Gulf and Indian Ocean region has risen from 7.8mn b/d in 2017 to over 10.5mn b/d in 2024. Gasoline production has grown from 1.7mn b/d to close to 2.4mn b/d and exports from 530,000 b/d to 880,000 b/d during the same time.
In this expanding ecosystem, the traditional gasoline price for the Mideast Gulf based on a Singapore price with a freight netback applied does not work. To adequately reflect the local supply and demand fundamentals, there needs to be an independent price for this growing region.
We have launched the Argus fob Mideast Gulf Gasoline (MEBOB) price assessment to provide transparency and reflect the changing dynamics. Argus MEBOB is a 92R oxygenated gasoline price assessed as a daily outright price on a fob basis in the Mideast Gulf. It represents the value of gasoline in the region based on trading activity during the UAE trading day.
Price assessment details
Why does the market need a new fob Mideast Gulf gasoline price?
Currently, fob Mideast Gulf 92R gasoline prices are assessed as a netback from the fob Singapore 92R gasoline price. But fundamental changes in supply-demand balances mean exports to Singapore accounted for only 7pc of total exports from this region last year, with Mideast Gulf gasoline cargoes moving either within the region to east Africa and Pakistan, or further to Asia, US and Australia. Recent volatility in tanker freight rates, caused by disruptions along key routes, has also resulted in dislocations. The markets in Singapore and the Mideast Gulf are increasingly independent.
How is the Argus MEBOB price assessed?
The new Argus MEBOB price is published as a daily outright assessment. The Argus Open Markets® (AOM®) platform is the main price discovery tool for the assessment. The platform allows participants to place bids, offers and initiate trades for gasoline lots of between 100,000 bl and 300,000 bl. Delivery is on an FOB basis at Fujairah, Jebel Ali or Sohar between 16 to 30 days ahead. In times of low liquidity, we will conduct a market survey and/or rely on existing and transparent transactions to form the basis of the assessment.
How to access the price assessment
Argus MEBOB is published daily in the Argus Mideast Gulf and Indian Ocean Products and Argus Asia-Pacific Products reports.
What are the advantages of the Argus MEBOB assessment?
The Argus MEBOB price is the only assessment that reflects current supply-demand fundamentals and market conditions in the region. It helps minimise pricing risk that arises from specification differences from Singapore, volatile freight rates and long lead times for delivery to markets. Argus’ expertise in the gasoline market is long established – the Argus Eurobob price assessment is the benchmark for the gasoline market in Europe.
How is this assessment used?
Regional refiners and traders can capture the true value of gasoline by using Argus MEBOB pricing for export and import deals, as well as to price gasoline in the domestic Mideast Gulf markets.
Does the Argus MEBOB specification change between summer and winter?
Argus assesses winter and summer grades on Argus MEBOB. Argus accepts trades for winter specification for assessments published during October to February, and summer specification gasoline for assessments published during March to September.
Does the methodology allow delivery of non-oxy grades?
Argus assesses non-oxy grades as a differential to Argus MEBOB. We accept trades for non-oxy grades that meet or exceed the specification set out in the methodology. The premium or discount for non-oxy grades relative to the methodology specification can be reported in AOM®.