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Northwest Europe Gasoline Margins Tumble Over $5 as Crude Oil Prices Climb
Gasoline refining margins in Northwest Europe fell sharply on Tuesday, pressured by a rally in crude oil prices. The key profit benchmark dropped by approximately $5.03 to settle at $53.21 per barrel, according to market data.
Trading Activity
Despite the falling margins, the regional barge market saw significant trading activity. The transactions highlight the dynamic flow of physical product among major energy firms.
Key trades reported included:
- E5 Gasoline: Approximately 6,000 metric tons of E5 barges were traded, with ExxonMobil selling to Gunvor and Varo. In a separate deal within the Platts price window, Shell sold an E5 barge to Trafigura.
- E10 Gasoline: An additional 6,000 metric tons of E10 barges changed hands, sold by TotalEnergies' trading arm, Totsa, to Varo and ExxonMobil.
AdBroader Market Pressures
The pressure on refined product markets comes amid wider concerns about global energy supply chains and geopolitical risk. Market commentary cited in reports pointed to potential disruptions in key shipping lanes.
An executive from Goldman Sachs reportedly stated on Tuesday that oil product flows through the critical Strait of Hormuz are currently at just 35% of pre-conflict levels, with crude oil flows at 70%. Separately, the CEO of Nigeria's Dangote refinery was cited as expecting fuel shortages to persist long after any potential conflict, pointing to the time needed to repair damaged infrastructure and rebuild inventories.
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