(Bloomberg) -- Gasoline -- which normally trades at a premium to crude oil -- has plunged in Europe to the lowest discount on record as coronavirus lockdowns take their toll on demand for the transport fuel.
The nearest-month gasoline contract traded at a discount of $11.50 a barrel to the equivalent Brent crude swap on Wednesday, according to data from PVM Oil, a brokerage. That's the lowest it has been in records dating from late 2006.
Signals from Spain and Italy, two of the countries hit hardest by the virus, point to a staggering drop in demand. Other European countries including France, Germany and the U.K. have also imposed restrictions.
Europe has been exporting its gasoline to the U.S., but there as well, prices have fallen sharply. Gasoline traded on the New York Mercantile Exchange is now at only a small premium to West Texas Intermediate crude, having recently dipped to a discount.
©2020 Bloomberg L.P.
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