Northwest European Gasoline Margins Rise Above $40 on Strong Demand

Northwest European gasoline refining margins climbed above $40 a barrel on Friday, supported by strong demand and tight physical market conditions. The increase comes even as inventory data from both Europe and the U.S. showed a build in stockpiles.

Margin and Trading Details

The profit margin for refining gasoline in the region, a key industry benchmark, increased to $40.04 per barrel from $38.85 per barrel in the prior session, according to market data.

Trading activity in the barge market was brisk, signaling healthy demand. Key transactions included:

• 10,000 metric tons of E5 gasoline barges traded, with Exxon and Trafigura selling to buyers including BP, MB Energy, Aramco, and Totsa.
• An additional 8,000 metric tons of E10 barges changed hands, with Gunvor and Sahara selling to Varo.

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Inventory Levels Rise

Despite the strong margins, supply data pointed to growing inventories on both sides of the Atlantic. In the key Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub, gasoline stocks rose by approximately 3.7% to 877,000 metric tons in the past week, according to Dutch consultancy Insights Global.

Similarly, the U.S. Energy Information Administration (EIA) reported that American gasoline stocks grew by 0.7 million barrels last week, reaching a total of 209.4 million barrels. The rising margins in the face of growing stockpiles suggest that current demand is robust enough to absorb the additional supply.