Related Articles
Forward article link
Share PDF with colleagues

Refiners' margin call

They made hay while the sun shone, but rain is on the way

THE PROFITS to be had from refining crude oil into fuel are weakening, and US demand for gasoline probably won’t come to the rescue, because stocks are bulging. In Europe, refining margins are under pressure, as Brent cracks are expected to fall to $2.50 a barrel in the third quarter, according to data from Energy Aspects. That’s down from around $4/b in Q2 and $5.80/b at the same time last year. Margins in the Mediterranean will fall into negative territory – meaning refiners would pump at a loss – by the fourth quarter. That’s down from average Urals hydrocracking margins of around $2.75/b in Q2 and $5.54/b in Q4 2015. European hydroskimming margins have been in negative territory since

Also in this section
Opec and IEA bristle at Trump’s trade posturing
16 March 2018
The IEA and Opec say Trump’s trade plans are a threat to global growth
Five key takeaways from the big three oil market reports
15 March 2018
Demand and supply data still diverge, Venezuela’s increasingly critical to balances, and some macro alarm bells are starting to ring
China bets on a yuan-oil bonanza
13 March 2018
The country's long-delayed crude oil futures contract promises much, but doubts persist