Story
Northwest Europe Gasoline Margins Climb to $47.62 Amid Active Trading
Summary
Gasoline refining margins in Northwest Europe rose by $0.68 to $47.62 a barrel on Wednesday, buoyed by brisk trading activity despite a surprise increase in U.S. gasoline inventories.
Gasoline refining margins in Northwest Europe rose on Wednesday, supported by a session of active trading in the region's barge market. The profit margin, a key indicator of refinery profitability, increased by $0.68 to settle at $47.62 per barrel.
Brisk Trading in European Barges
The market saw significant physical trading activity, with a total of 20,000 metric tons of gasoline changing hands. The transactions highlighted broad participation from major industry players.
- E5 Gasoline: ExxonMobil sold 10,000 metric tons in barges to buyers including Gunvor, ATL, and BP.
- E10 Gasoline: TotalEnergies sold an additional 10,000 metric tons to Trafigura, ExxonMobil, BP, and MB Energy.
Contrasting Signals from US Inventories
AdThe strength in European margins occurred despite bearish inventory data from the United States. The U.S. Energy Information Administration (EIA) reported on Wednesday that domestic gasoline stockpiles unexpectedly rose by 794,000 barrels last week, reaching a total of 207.7 million barrels.
This increase ran contrary to analyst expectations for a 1 million barrel draw, a development that can signal weaker-than-anticipated demand in the world's largest oil-consuming market.
Broader Market Context
Adding to the complex global supply picture, Russia's government is reportedly planning to extend restrictions on diesel exports for fuel producers through the end of October. The news was reported by the Vedomosti newspaper on Tuesday, citing two anonymous sources.
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