Northwest European gasoline refinery margins fell sharply, registering a decline of about 14% to reach $27.42 per barrel on Friday. The reduction in margins coincided with a build in regional gasoline stocks and a strengthening of underlying crude prices, according to market reports.
Physical trading in the region remained active despite the margin squeeze. On an Argus basis, approximately 24,000 metric tons of E5 gasoline barges were reported traded in the Argus window, with BP selling cargoes to TotalEnergies and ExxonMobil. In the Platts window, BP also sold an E5 barge to Trafigura. Separately, around 4,000 tons of E10 gasoline barges were reported traded on an Argus basis, with TotalEnergies selling to Shell.
Inventories held independently in the Amsterdam-Rotterdam-Antwerp refining and storage hub rose by 8.3% to 1.17 million tons. Market commentary attributed the inventory increase to a slowdown in export activity while inland demand remained steady, based on data published by Dutch consultancy Insights Global on Friday.
Data on export flows showed a notable reduction in outbound shipments of gasoline and blending components from the EU-27 and the UK. Average exports for the current month stood at 657,000 barrels per day, down from 945,000 barrels per day in April, according to information from Kpler. That decline in exports coincided with the inventory build reported at the ARA hub.
The combination of higher regional stocks and firmer crude values was reflected in the weaker refining margin for gasoline, which market participants use as a gauge of regional refining economics. Reported barge trades underline ongoing physical activity among refiners and traders even as the margin environment softened.
Summary
- Northwest European gasoline refinery margins decreased by about 14% to $27.42 per barrel.
- Physical trades included roughly 24,000 metric tons of E5 barges (BP to TotalEnergies and ExxonMobil; BP to Trafigura in Platts) and about 4,000 tons of E10 (TotalEnergies to Shell) on an Argus basis.
- ARA independent stocks rose 8.3% to 1.17 million tons as exports slowed and inland demand held steady.
- Average EU-27 and UK exports of gasoline and blending components fell to 657,000 bpd this month from 945,000 bpd in April.
Impacted sectors - refining margins influence refiners, fuel traders, port storage operators, and downstream fuel supply chains.