Northwest European Gasoline Margins Climb to $47.62 Amid Active Trading

Northwest European gasoline refining margins strengthened on Wednesday, rising despite a surprise build in U.S. inventories that defied analyst expectations. The key profit indicator for the region's refiners climbed by 68 cents to $47.62 per barrel.

European Trading Activity

Trading in the region was active, providing support for the higher margins. A total of 20,000 metric tons of gasoline barges changed hands during the session.

• E5 Gasoline: 10,000 metric tons were traded, with Exxon acting as the seller to Gunvor, ATL, and BP.
• E10 Gasoline: Another 10,000 metric tons were traded, with TotalEnergies selling to a group of buyers that included Trafigura, Exxon, BP, and MB Energy.

Surprise Build in US Stockpiles

Across the Atlantic, data from the U.S. provided a contrasting, bearish signal for the market. The Energy Information Administration (EIA) reported on Wednesday that U.S. gasoline inventories unexpectedly grew by 794,000 barrels last week.

Ad

The build brought total U.S. stockpiles to 207.7 million barrels. This result ran counter to market forecasts, as analysts surveyed had anticipated a draw of 1 million barrels. An increase in inventories typically suggests weaker demand and can put downward pressure on prices and margins.

Broader Market Factors

In a related development for the refined products market, Russia is reportedly planning to extend its restrictions on diesel exports through the end of October. The newspaper Vedomosti reported the plan late on Tuesday, citing two unnamed sources.

While the curbs are focused on diesel, any prolonged export restrictions from a major supplier like Russia can influence the broader European energy supply balance and sentiment in the oil products complex.