US spot  toluene was assessed Thursday at  a 17-month high at $2.44/gal ($741.76/mt) FOB 

US Gulf Coast. 

US  toluene  pricing  hasn't  been seen  higher since August 10, 2015, based on S&P Global 

Platts data. 

Toluene pricing saw a 16-month  high during December at $2.41/gal because of limited supp

ly and bullish expectations for  more toluene to be absorbed by gasoline to boost octane due 

to  the  Environmental  Protection  Agency's  Tier-3 regulations on sulfur that went into effect 

January 1, sources said. 

Because sulfur  content in gasoline would have to be reduced to 10 ppm from 30 ppm, there 

would be an octane shortage and more toluene would be needed to satisfy that shortage. 

These same dynamics have persisted, sources said, pushing toluene pricing to the 17-mont

h high. 

Demand  will  strengthen  throughout  the first quarter and supply will likely remain limited as 

toluene goes into the gasoline pool, sources said. 

Day over day, US toluene pricing gained 2 cents/gal.