Northwest European Gasoline Margins Climb to Nearly $40 on Tight Supply

Gasoline refining margins in Northwest Europe rose on Wednesday, climbing $0.53 to settle at $39.78 per barrel amid signs of tightening regional supply, according to market data.

European Trading Activity

Activity in the physical market underscored the supply dynamics, with significant volumes of gasoline changing hands. In total, 16,000 metric tons of E5 gasoline barges were traded.

• Sellers included commodity trader Trafigura and Norwegian energy firm Equinor.
• Buyers were TOTSA (TotalEnergies' trading arm), Varo Energy, MB Energy, and Petroineos.

An additional 8,000 metric tons of E10 gasoline barges were also traded. Sellers in these deals included Exxon, Sahara, and Shell, with Varo Energy and Trafigura purchasing the cargoes.

Global Supply Pressures

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The price strength in Europe comes against a backdrop of significant disruptions in global fuel markets. According to shipping data and trade sources, Russia has imported nearly 270,000 metric tons of refined products this month via ship-to-ship transfers in Asia to cover domestic shortages.

These shortages are a direct result of Ukrainian drone attacks on Russian refineries. The supply crunch has reportedly led to purchasing limits at gas stations in Moscow, coinciding with peak seasonal demand, according to witnesses and fuel suppliers cited in reports.

Market Implications

The tight supply environment is creating favorable conditions for refiners in other regions. Refiners in India and the United States are reportedly benefiting from the global fuel supply disruptions, which have supported prices and spurred strong demand from importers during the Northern Hemisphere's summer driving season.