Northwest European Gasoline Margins Tumble Over $7 as Crude Oil Surges

Northwest European gasoline refining margins dropped by more than $7 on Tuesday, squeezed by a surge in crude oil prices linked to shipping disruptions in Saudi Arabia. The key profitability indicator for refiners fell to $46.53 per barrel, reflecting the higher cost of crude feedstock.

Market Activity

Trading activity in the region remained steady despite the margin pressure. According to market data, a total of 20,000 metric tons of gasoline changed hands in the barge market.

• E5 Gasoline: Approximately 12,000 metric tons were traded, with Exxon and Equinor selling to Gunvor and BP.
• E10 Gasoline: An additional 8,000 metric tons were sold by TotalEnergies to buyers including Exxon, BP, and Varo.

In the Mediterranean market, trading was more subdued. A bid from BGN for a cargo at $1,346 per metric ton FOB Agioi Theodoroi in the Platts window did not attract any sellers, indicating a tight market.

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Broader Context

The drop in margins comes amid growing concern over high fuel prices in Europe. German Finance Minister Lars Klingbeil stated on Tuesday that the government must find ways to reduce the burden of gasoline prices on consumers.

Meanwhile, disruptions to traditional Middle East exports have shifted trade flows. Nigeria’s new Dangote oil refinery has reportedly become a major fuel supplier to Europe, capitalizing on the supply gap and generating significant profits ahead of its anticipated stock market listing.