Northwest European Gasoline Margins Rebound Sharply to Over $48 a Barrel

Northwest European gasoline refining margins staged a significant recovery on Friday, climbing by $16.92 to settle at $48.73 per barrel. The sharp increase followed a drop to a one-month low in the previous session, which was driven by a rally in crude oil futures.

Trading and Price Action

Trading activity in the region was robust, according to market reports. Key transactions included:

• 24,000 metric tons of E5 gasoline barges changing hands, with Exxon reported as a seller to firms including Gunvor, Varo, Aramco, and Vitol.
• An additional 9,000 metric tons of E10 gasoline barges were traded, with Equinor, Finco, and Shell selling to Exxon.

The rebound suggests that underlying demand and market fundamentals remain strong enough to absorb higher feedstock costs from crude oil.

Record Import Volumes

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The price action is set against a backdrop of exceptionally strong import flows. According to data from analytics firm Vortexa, global loadings of gasoline and blending components destined for Europe averaged a record 1.2 million barrels per day as of September 9.

This figure represents a 60% increase over the five-year seasonal average, indicating a well-supplied market despite ongoing regional and global demand.

Geopolitical Context

Adding a layer of geopolitical tension, Ukraine’s military reported on Friday that it had conducted an overnight strike on a Russian oil refinery in Saratov. While the immediate impact on supply was not specified, such events can influence market sentiment and risk premiums for refined products in the broader region.