Northwest European gasoline refining margins fell as crude oil prices rose on Tuesday, squeezing the spread refiners earn on fuel. Barge trading in the region stayed active even as the market tightened, while a Goldman Sachs executive flagged that oil product flows through the Strait of Hormuz remain well below pre-war levels.
Northwest European gasoline refining margins dropped by approximately $5.03 to $53.21 per barrel on Tuesday as crude oil prices moved higher. The move cuts into the profit refiners make from turning crude into finished gasoline.
Barge Trading Stays Active
Physical trading kept pace despite the tighter margins. About 6,000 metric tons of gasoline E5 barges changed hands, with Exxon selling to Gunvor and Varo.
An additional 6,000 metric tons of gasoline E10 barges traded, with Totsa selling to Varo and Exxon. In the Platts window, Shell sold an E5 barge to Trafigura.
Hormuz Flows Point to Prolonged Shortages
Dangote oil refinery's chief executive said fuel shortages are expected to continue well beyond the U.S. war with Iran, citing refinery damage and the need to rebuild stocks. Meanwhile, oil product flows through the Strait of Hormuz currently stand at 35% of pre-war levels, a Goldman Sachs executive said Tuesday.
That compares with crude oil flows at 70% of pre-war levels through the same strait.
Source: Commodities & Futures News
Trading involves risk.
Risk Disclaimer
