Story
Northwest European Gasoline Margins Ease but Remain Near 2022 Highs
Summary
Gasoline refining margins in Northwest Europe fell to $60.20 a barrel but stayed close to record levels from the 2022 energy crisis amid tight regional supplies and rising inventories.
Gasoline refining margins in Northwest Europe declined on Friday but remained near the historically high levels seen during the 2022 energy crisis, underscoring persistent tightness in the regional market. Margins for gasoline dropped to $60.20 per barrel, according to market data.
Inventories Rise as Exports Slow
The slight easing in margins coincided with a significant build in regional inventories. Gasoline stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub surged by nearly 18% over the past week, according to data released Thursday by Dutch consultancy Insights Global.
Total stockpiles reached 885,000 metric tons. The increase was driven by reduced exports to other regions and an uptick in motor fuel blending activity, said Insights Global analyst Rick Veringmeier.
Market Activity and Context
AdTrading activity in the physical barge market was noted, with several major firms participating. According to trade sources:
- E5 Gasoline: 4,000 metric tons changed hands, with MB and BP selling to Gunvor and Trafigura.
- E10 Gasoline: An additional 4,000 metric tons traded, with ATL and Equinor as sellers to Varo and Exxon.
In related news impacting the Atlantic basin, Nigeria’s Dangote Group is planning an initial public offering for its new refinery. The offering is expected to be priced at 525 naira ($0.40) per share and could raise approximately $1.5 billion, according to two people with direct knowledge of the transaction.
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