Surge in Gasoline Refinery Margins#
Gasoline refinery profit margins in Northwest Europe saw a significant increase, rising by $8.49 to reach $30.59 per barrel on Friday. This marks the highest level for these margins since August 2023, driven by a decline in oil prices.
Active Trading in Gasoline Barges#
Trading activity was notably strong, with 24,000 metric tons of E5 gasoline barges being traded in the Argus window. Major companies such as BP, Shell, Gunvor, and Equinor sold their products to TotalEnergies. Additionally, 8,000 tons of E10 gasoline barges were also traded, with Shell and Sahara making sales to TotalEnergies, Exxon, and Trafigura.
Impact of Refinery Maintenance#
TotalEnergies’ Donges refinery, which is the second-largest in France, went offline on April 27 for a planned maintenance period lasting two months. This refinery is crucial as it accounts for 20% of France's crude refining capacity and can process approximately 11 million tons of crude oil annually.
Rising Gas Prices in the U.S.#
In the United States, gasoline prices have surged, with California motorists facing costs of $6 per gallon as of Thursday. This is the highest price seen in two years, coinciding with the upcoming summer driving season. In response to rising oil prices, the Trump administration announced plans to potentially loan energy companies up to 92.5 million barrels of crude from the Strategic Petroleum Reserve to stabilize the market.