Story
Northwest European Gasoline Margins Decline as Crude Prices Strengthen
Summary
Gasoline refining margins in Northwest Europe fell by over $5 to $53.21 a barrel on Tuesday, pressured by a rally in crude oil prices that increased feedstock costs for refiners.
Gasoline refining margins in Northwest Europe retreated on Tuesday, squeezed by a rise in the price of crude oil. The profit margin for producing the motor fuel dropped by approximately $5.03 to settle at $53.21 per barrel, according to market data reported by Investing.com.
Market Activity
The decline in the gasoline crack spread—the difference between the price of crude oil and the price of gasoline—reflects higher input costs for European refineries.
Trading activity in the region's barge market included:
- Approximately 6,000 metric tons of E5 gasoline changing hands, with Exxon selling to Gunvor and Varo.
- An additional 6,000 metric tons of E10 gasoline were traded, with Totsa selling to Varo and Exxon.
AdIn a separate transaction within the Platts window, Shell sold an E5 barge to trading house Trafigura, the report noted.
Broader Context
The source also cited commentary from industry executives on Tuesday regarding the long-term energy supply outlook. The chief executive of Nigeria’s Dangote oil refinery reportedly stated that fuel shortages could be prolonged by factors such as damage to refineries and the need to rebuild global inventories.
Separately, a Goldman Sachs executive was cited as saying that oil product flows through the Hormuz strait were at 35% of their levels prior to a hypothetical conflict scenario mentioned in the source, compared with crude oil flows at 70% of their prior levels.
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