Northwest Europe Gasoline Margins Ease but Remain Near 2022 Crisis Highs

Gasoline refining margins in Northwest Europe retreated to $60.20 per barrel on Friday but remained near the record highs established during the 2022 energy crisis. The elevated profit levels for refiners underscore persistent supply tightness in the region.

Inventory Builds Amid Lower Exports

Despite the strong margins, gasoline inventories in the key Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub saw a significant build. According to a Thursday report from Dutch consultancy Insights Global, independent gasoline stocks climbed by nearly 18% week-over-week.

Total stockpiles in the ARA hub rose to 885,000 metric tons. Rick Veringmeier, an analyst at Insights Global, attributed the increase primarily to a reduction in exports to other regions. Veringmeier also noted that blending activity for automotive fuels continues to rise.

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Active Physical Market

Trading activity in the physical market was robust. In total, 4,000 metric tons of E5 gasoline barges were traded, with MB and BP selling to buyers Gunvor and Trafigura.

Additionally, another 4,000 metric tons of E10 gasoline barges changed hands. Sellers included ATL and Equinor, while Varo and Exxon were the buyers in those transactions.