East/West (MD)

An East/West differential is the difference between the price of a product in the East (Asia, usually Singapore) vs its price in the West (Europe, NWE usually). An example of an E/W would be the gasoline E/W which is Sing 92 – EBOB. An East/West can be useful for exploiting price discrepancies between the East and West and also the effects of freight and geopolitical risk premiums which may affect one region more than another.