Northwest Europe Gasoline Margins Jump to $52 a Barrel Amid Active Trading

Gasoline refining margins in Northwest Europe surged by approximately $3 on Monday, reaching a notable $52 per barrel, according to market data. The sharp increase in profitability for refiners coincided with a high volume of physical trading in the region.

Brisk Market Activity

The market saw significant liquidity with around 20,000 metric tons of Eurobob gasoline barges changing hands. The trading was split between two main grades:

• E5 Gasoline: Approximately 10,000 metric tons were traded, with ExxonMobil and Equinor serving as sellers. The buyers included major trading houses Gunvor, Varo, Aramco Trading, and Vitol.
• E10 Gasoline: A similar volume of about 10,000 metric tons was also traded. Shell and TotalEnergies' trading arm, Totsa, sold cargoes to ExxonMobil and Varo.

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Further transactions were reported in the Platts pricing window, where ExxonMobil sold an E5 barge to Trafigura. In a separate deal, Glencore sold a Mediterranean gasoline cargo to BP.

Geopolitical Context

The strengthening margins occurred as U.S. President Donald Trump stated on Monday that Ukraine and Russia had reached an agreement to not attack each other's energy infrastructure. A reduction in geopolitical risk to energy facilities can ease concerns about potential supply disruptions, a factor that often influences market sentiment and pricing for both crude oil and refined products.