Northwest European Gasoline Margins Climb as Regional Supplies Tighten

Gasoline refining margins in Northwest Europe increased on Wednesday amid signs of tightening supplies in the region. The profit margin for refining a barrel of crude oil into gasoline rose by $0.53 to reach $39.78 per barrel, according to market data.

Trading Activity

Activity in the physical barge market highlighted the supply dynamics. A total of 16,000 metric tons of E5 gasoline barges were traded, with oil trading firms Trafigura and Equinor selling to buyers including TOTSA, Varo, MB Energy, and Petroineos.

In separate trades, an additional 8,000 metric tons of E10 gasoline barges changed hands. Sellers in these transactions included Exxon, Sahara, and Shell, while Varo and Trafigura were listed as buyers.

Ad

Global Supply Pressures

Broader geopolitical factors are contributing to the tight market conditions. Russia is reportedly importing nearly 270,000 metric tons of refined fuels this month through ship-to-ship transfers in Asia to address domestic shortages, according to preliminary shipping data and trade sources. These shortages are linked to Ukrainian drone attacks on Russian oil refineries.

The disruptions have created a favorable environment for refiners in other regions, such as India and the United States, who are benefiting from higher prices and strong demand during the Northern Hemisphere's summer driving season. In Russia, some fuel stations in Moscow have reportedly reintroduced limits on gasoline purchases due to the combination of refinery outages and high seasonal demand.