Story
Northwest European Gasoline Margins Decline as Crude Oil Prices Surge
Summary
Gasoline refining margins in Northwest Europe fell sharply on Wednesday, dropping by more than $7 per barrel as global oil prices jumped over 5% amid rising geopolitical tensions.
Northwest European gasoline refining margins dropped by $7.23 to $32.73 per barrel on Wednesday. The decline coincided with a significant surge in crude oil prices, which rose by more than 5%, impacting the profitability of producing gasoline.
In the day's trading, several transactions were noted in the gasoline barge market. Sahara sold 4,000 metric tons of Eurobob E10 gasoline to Varo. Additionally, Trafigura sold a total of 2,000 tons of Eurobob E5 gasoline in separate deals to Gunvor and MB Energy.
The spike in oil prices was reportedly linked to heightened geopolitical risk. U.S. President Donald Trump commented that an interim agreement with Iran was "over" and suggested the possibility of new military action. This development contributed to a fall in global stocks and bond prices.
AdAdding to market pressures, Russia's Deputy Prime Minister Alexander Novak announced that the country would ban diesel exports and begin importing fuel in July. The move is intended to address domestic supply issues for both gasoline and diesel, potentially affecting regional fuel availability.