Northwest European Gasoline Margins Surge to Nearly $39 a Barrel

Northwest European gasoline refining margins jumped by $5.97 on Monday, reaching $38.97 per barrel. The sharp increase in profitability for refiners was supported by a drop in crude oil prices, which hovered near one-week lows.

Supply Concerns and Crude Prices

The improved margin for gasoline producers comes amid several geopolitical and supply-side developments. Crude oil prices softened following what the source described as a pause in strikes between the U.S. and Iran over the weekend, which eased immediate supply fears for crude.

However, the outlook for refined gasoline supply remains tight. Key developments include:

• Russian Export Ban: Russia's Deputy Prime Minister Alexander Novak told Interfax on Saturday that the country will extend its ban on gasoline exports through the end of the year.
• Refinery Disruption: A Ukrainian drone strike reportedly caused a fire at the Tyumen refinery in western Siberia on Saturday, according to local Russian authorities, though the fire was later extinguished.

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European Market Activity

Trading activity in the region was robust. In barge trading on the Argus platform, Exxon Mobil sold 2,000 metric tons of Eurobob E5 gasoline to Gunvor. In separate deals, Shell sold a combined 6,000 metric tons of Eurobob E10 to Trafigura and MB Energy.

Meanwhile, governments are responding to high costs for consumers. In Italy, the cabinet is planning to introduce new measures to address rising fuel prices, government officials said Monday, though they also noted concerns about the potential fiscal impact of such interventions.