Toluene Prices Surge to Multi Month Highs on Acute Octane Demand

The Octane Premium

With wholesale RBOB gasoline at $2.12, the premium for toluene as an octane booster has widened significantly. Refiners are outbidding chemical solvent manufacturers for available spot volumes, leading to a supply squeeze for industrial users.

Maintenance Reduced Stream

The spring refinery maintenance cycle is reducing the reformate stream from which toluene is extracted. This seasonal drop in supply is expected to keep prices elevated through at least mid-March.