Story
Northwest European Gasoline Margins Jump Nearly $3 on Tight Supply
Summary
Gasoline refining margins in Northwest Europe surged to $39.25 per barrel on Tuesday, an increase of nearly $3, as tight market conditions supported prices. The rally was accompanied by active trading in the region's barge market.
Gasoline refining margins in Northwest Europe jumped by nearly $3 on Tuesday, reaching $39.25 per barrel in a rally supported by signs of a tightening market, according to market data.
Active Barge Trading
The price increase was accompanied by significant trading activity in the physical barge market. A total of 21,000 metric tons of gasoline changed hands.
- E5 Gasoline: 10,000 metric tons of E5 barges were traded, with TotalEnergies Trading (TOTSA) buying from sellers Trafigura, ExxonMobil, and Equinor.
- E10 Gasoline: 11,000 metric tons of E10 barges were sold by Exxon, Sahara, and Shell to buyers including Varo, ATL, and MB Energy.
AdGlobal Market Factors
Broader market dynamics are also influencing product flows. In China, customs data released Tuesday showed that refined fuel exports fell 12.9% in July compared to the same month last year. However, exports rose 6.7% from June's levels after the government relaxed export restrictions, allowing refiners to ship more product overseas.
Meanwhile, in the Middle East, Saudi Aramco resumed loading oil from within the Strait of Hormuz last week, according to shipping data and trade sources. The state-owned energy giant is reportedly selling cargoes of heavy crude oil on the spot market as more tankers await loading, a development that could impact global crude supply and refining feedstock costs.
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