Refinery in Puertollano, Spain
Energy costs hit European refining
Margins narrowed considerably in the third quarter but still remain elevated for the time of year, as the continent continues to adapt following Russia’s invasion of Ukraine
A survey of European refiners—comprising TotalEnergies, Shell, Portugal’s Galp, Spain’s Repsol and Poland’s PKN—demonstrates a significant spike in second-quarter margins that eased in the third quarter. Refining margins across the six companies averaged $25.38/bl April-June compared with $7.15/bl in the previous three months. Margins were significantly lower in the second quarter of 2021, when they averaged just $2.19/bl, but even in pre-pandemic Q2 2019 they averaged only $3.86/bl, demonstrating the magnitude of this year’s increase. But those wide margins have subsequently narrowed, albeit without losing all their previous gains. Not all six of the above refiners had issued Q3 guidance or
Also in this section
20 February 2025
Greater social mobility means increased global demand for refined fuels and petrochemical products, with Asia leading the way in the expansion of refining capacity
19 February 2025
The EU would do well to ease its gas storage requirements to avoid heavy purchase costs this summer, with the targets having created market distortion while giving sellers a significant advantage over buyers
18 February 2025
Deliveries to China decline by around 1m b/d from move to curb crude exports to Shandong port, putting Iran under further economic pressure
18 February 2025
Booming crude production has been met with international caution after the UN’s damning assessment
