Northwest European Gasoline Margins Surge to Near-2022 Highs on Tight Supply

Gasoline refining margins in Northwest Europe surged on Thursday, approaching the historic highs seen during the 2022 energy crisis. The profit margin for refining gasoline in the region rose by $2.45 to $61.86 per barrel, a move primarily driven by persistent supply tightness, according to market data.

Market Activity and Inventory Data

Trading activity underscored the tight market, with several major players active. ExxonMobil and MB Energy sold approximately 6,000 metric tons of E5 gasoline barge cargoes to Gunvor and Trafigura. Separately, Shell and Sahara Energy sold an additional 10,000 tons of E10 gasoline barges to Varo and ExxonMobil.

Despite the high margins, gasoline inventories in the key Amsterdam-Rotterdam-Antwerp (ARA) storage hub actually increased. According to a Thursday report from Dutch consultancy Insights Global, independent gasoline stocks in the ARA hub rose by nearly 18% over the past week to 885,000 metric tons. Analyst Rick Veringmeier attributed the build to lower export volumes to other regions and an increase in blending activity for automotive fuels.

Ad

Broader Context and Outlook

In the United States, a different inventory picture emerged. The U.S. Energy Information Administration (EIA) reported that domestic gasoline stockpiles fell by 1.2 million barrels to 205.7 million barrels in the week ending August 28, signaling robust demand or constrained production in another key global market.

Looking ahead, analysts suggest that market tightness could persist. "In the short term, EBOB spreads could still have further upside, especially as buying interest for E5 barges is expected to re-emerge for the September window in the next two weeks while inventories remain tight," said Nikolas Plonski, an analyst at Sparta Commodities.