European gasoline refining margins drop to $9.84 a barrel

what happened

Gasoline refining margins in Northwest Europe slipped by roughly $1.70 on Tuesday, to $9.84 a barrel, Reuters reported. Crude moved lower at the same time, with prices sliding around 2% to their weakest level in three weeks amid choppy trading. Traders balanced hopes for negotiations to end the conflicts in Ukraine and Iran against fresh concerns about supply interruptions after attacks in both countries.

Physical trade stayed active. Equinor sold six cargoes of Eurobob E5 to TotalEnergies, while 22,000 metric tons of Eurobob E10 changed hands, with Shell, Gunvor and Exxon selling to Varo, TotalEnergies and MB Energy. Separately, people familiar with Exxon's plans said the company will shut the gasoline-producing cracker at its 612,000 barrels-per-day Beaumont, Texas refinery in late November to carry out major work.

Orlen's Lithuanian unit could be forced to close unless its Polish parent invests heavily in upgrades that would allow more profitable output, CEO Ireneusz Fafara told the Polish Press Agency. Separately, the US Transportation Department estimated that a looser fuel economy rule would lift American gasoline use through 2050 by 4.6%, roughly 121 billion gallons versus Biden-era rules, while also supporting new car sales.

why it matters

For traders the signals point in different directions: weak refining margins reduce the incentive for refiners to push gasoline output, while hopes for peace weigh on crude. The Beaumont shutdown could tighten US gasoline supply later in the year, and looser fuel rules may support demand over the longer term.

market impact

Crude and gasoline margins: lower prices and weaker refining pressure the refining sector

• ↔Brent mixed — peace hopes weigh on prices while fears of supply disruptions after attacks support them
• ▼NW European gasoline crack pressure down — margin fell about $1.70 as crude weakened and gasoline trading softened

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