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
17 January 2025
Supply glut or supply deficit are both plausible outlooks, with tariffs and sanctions among the key risks that could swing the pendulum
17 January 2025
European Commission is on its way to meeting clean energy goals, but energy security concerns and higher costs may give it second thoughts
17 January 2025
The CEO of QatarEnergy has highlighted the potential impact a new EU directive could have on energy exports to the continent
16 January 2025
The government’s resource nationalism is aggravating the NOC’s debt position and could yet worsen if also tasked with the decarbonisation shift