|SAs European gasoline exports have continued to grow, they
have found some other markets beyond the U.S., which remains the primary
destination. But will these other
locations continue to absorb more or even the same volumes? Will European refiners find other
|SWe judge some of the locations to be subject to increased
competition. With U.S. capacity in
surplus, U.S. refiners on the Gulf Coast may take the Mexican market. The U.S. has historically exported some
gasoline to Mexico from the Gulf Coast region.
|SEuropean gasoline exports to the Middle East market could
face increased competition from new capacity in India and also from the
expansions planned in the Middle East itself.
|SAfrica seems to be the market where refining is perhaps in
least jeopardy from outside competition, but Middle East expansions could
also compete there.
|SEuropean refiners will continue to need to export gasoline
as they run their facilities for their own regional distillate demand. They will continue to be a very competitive
supplier for the U.S. East Coast, and we do not see these European import
volumes to the U.S. being displaced by U.S. Gulf Coast refiners.