Refining margins europe. These additions have significantly increased global refining capacity, worsening the oversupply situation. But the refining margin, known as crack, has fallen sharply since as imports from Asia, the Middle East and the United States rose to record highs in 1 day ago · These additions have significantly increased global refining capacity, worsening the oversupply situation. Nov 3, 2022 · Even in the FM scenario, around 20 percent of European refining capacity would face the pressure of negative margins by 2040, compared to 60 percent in an AT scenario. "It's actually the most efficient refinery we have in the fleet," said Robert Herman, Phillips 66's head of refining on the call. Figure 1 Changes in Cash Margins Overall, U. Aug 10, 2023 · Profit on processing a barrel of crude at a typical European or U. . The margin surged eightfold from $2. dollars per Apr 12, 2023 · Benchmark Northwest European diesel refining margins dropped to $17. Jul 1, 2021 · Energy Transition (Reference Case) The Reference Case reflects a scenario in which future policies and trends follow existing patterns. cash margins declined slightly from 2022 Q4 alongside crude and product prices as the Federal Reserve’s efforts to slow inflation began to Jan 15, 2024 · Average U. May 15, 2024 · Global refinery margins eased across all regions in April, as weaker-than-expected demand growth underpinned a collapse in middle distillate cracks and lower throughput levels. ** Portuguese integrated energy group Gap reported record high refining margin in Q2 of $22. Apr 24, 2024 · A view shows Marathon Petroleum's refinery in Anacortes, Washington, U. Mar 29, 2021 · USWC refining margins for Iraq's Basrah Light—a recent popular import into USWC refineries by Chevron, Valero and BP—averaged $17. West Coast had the highest profit of any major refining hub worldwide. 8 mb/d in 2H24. — All hub margins recover in line with utilization. 26, according to margin data from Platts Analytics. Mar 17, 2015 · Wood Mackenzie’s benchmark European gross refining margins data show a jump from minus 50 cents a barrel in February 2014 to $3. Jun 7, 2022 · Refining margins in Europe have been exceptionally strong in recent months amid expectations of a drop in refined product imports into Europe due to sanctions and the boycotting of Russian-sourced products, according to analysts at S&P Global. 0x. refining cash margins for the quarter remained very robust at $19. Pressure on GDP growth, which affects fuel demand, remains the main short-term risk. West Coast hub stood at 14. US and European margins decline in the long term, with average margins ~$2/barrel lower in 2031–35 than in recent history. Energy transition to erode demand from 2025, global competitors loom. This also reflects the fact that profits from making fuel are returning to more normal levels after a period in which they were elevated by disruption to Russian exports. May 11, 2021 · The refining margin in April to date is more than $3/b, Silva said, which would be an increase from a margin of $2/b the refinery reported in the first quarter and $1. Refiners’ long-term strategies will be increasingly influenced by the energy transition. 30/b -- a nine-fold increase year on year and threefold increase quarter on quarter. 2021 was not a great year for most assets, while in 2022 every refiner in Europe Apr 13, 2023 · The profit margin for refining crude oil into diesel in Europe hit an all-time high of more than $80 a barrel in October 2022 on concern that Europe won't be able to replace Russian imports. US demand to rise as travel increases over summer months; Energy Aspects sees pressure later in year due to new capacity May 28, 2022 · In Europe, the margins of a complex reference refinery located in Rotterdam were in the order of $1 to $2 per barrel in the 1990s, before recovering in 2000. refiners may see their profit levels drop, dragged down by a fall in demand for their key product gasoline. Jan 3, 2022 · Low inventories and strong demand from holiday travelers helped drive margins higher across the US, with benchmark US Gulf Coast cracking margins rising to average $14. IEA forecasts 1-1. 16/b. 2 days ago · These additions have significantly increased global refining capacity, worsening the oversupply situation. Jul 9, 2024 · The latest to feel the pinch is BP, whose stock fell more than 4 per cent on Tuesday after it warned of a $500mn-$700mn hit from weaker refining margins and flagged an impairment of up to $2bn 6 days ago · Gasoline profit margins in Europe averaged $12. Apr 29, 2024 · Over the last decade, the U. Gulf Coast refining margins were as high as $17 to $20 per barrel in 2023 but we anticipate them to fall to $12 to $15 this year. oil refinery margins have halved since the middle of 2022 but they are still at historically high levels and will be supported through the summer of 2023 by high operating rates and low fuel Oct 21, 2021 · In Northwest Europe, refining margins topped $9 last week, the highest since April 2020, while U. 30 E = average euro/US dollar exchange rate for the period R = Total Refining Aug 17, 2023 · And a result, the regional lower refinery capacity combined with faster demand growth is sustaining higher margins for US and European refiners than their Asian counterparts, who are faced with higher costs including skyrocketing tanker rates to bring crude into their refineries and ferry products out to export markets. Annual growth in refinery activity is forecast to accelerate from just above zero in 1Q24 to 500 kb/d in 2Q24 and to 1. 37/b. 5 million b/d at risk of closure in Europe by 2030. Mar 8, 2022 · Refining profits, or margins, from turning crude oil into products such as gasoline and diesel are ballooning, and could surge further after the United States, the world's top oil consumer, on May 6, 2022 · According to S&P Global Commodity Insights, benchmark refining margins in Europe are robust amid very strong distillate and gasoline cracks. During the “golden age” of refining, from 2005 through 2008, global supply of 650°F+ material was greater than the demand for nonswitch-able end uses, meaning substitution for Apr 29, 2024 · Investment in geological exploration in China 2010-2022, by mineral type; Oil and petroleum refining industry in China 2024; Oil and petroleum refining industry's market size China 2011-2023 Sep 18, 2024 · The refining margins shown above are compiled using data from third-party databases, and as such may be subject to possible errors. IEA Refinery Margins Methodology Notes Oil Industry and Markets Division September 2012 The International Energy Agency (IEA) has with the 12 September 2012 Oil Market Report resumed its coverage and estimations of refinery margins. Under this scenario, all hub margins are expected to recover in line with utilization, but US and European margins would decline over the long term, with average margins approximately $2 per barrel lower in 2031–35 than in recent history. The average price received for May 16, 2023 · Fitch Ratings-London-16 May 2023: European refining margins will moderate in the near term, but will remain above historical averages, Fitch Ratings says. refining margins fell on relatively flat utilization and lower crack spreads compared to 2022 Q2. Smoke billows after Ukraine’s drone strikes at a refinery in Jan 18, 2022 · European margins rose as increased natural gas supply tamped down the region's record-high prices, reducing the cost for many of the plants dependent on the fuel to operate, boosting margins and increasing exports of refined products from the region, an analysis by S&P Global Platts showed Jan. Mar 14, 2024 · Europe’s refineries in demand as Ukraine war boosts oil margins. 10/b, from $4. S. 50/b in Q2 2021. 56 a barrel in April, while refining profit margins Jun 7, 2023 · Here's What Refining Margins Say About the State of the Oil Market. 50/b in Q1. The biggest variation exists in Asia, where the market either grows in the FM scenario or shrinks in the CT and FA scenarios, depending on assumptions for China. Crack spreads for both diesel and gasoline increased in the first several months of 2022. refining fundamentals. 70 a barrel on Wednesday, their lowest since Feb. 18. Jun 10, 2022 · The price difference between the price of crude oil and the wholesale price of a refined petroleum product reflects the value of refining crude oil. This difference, known as the crack spread, can indicate refining margins and profitability. 3, Northwest Europe refining margins for Urals rose 20 cents/b week on week to average $5. * The Refining Marker Margin (RMM) is a generic indicator. 41/b the week earlier, according to S&P Global Platts Analytics refining margins. 1 day ago · “European refiners have been forced to cut runs, with northwest Europe Brent FCC margins turning negative since mid-August,” FGE head of refining Qilin Tam said, adding “we expect margins to remain weak for the rest of 2024,” (Sep 17) Socar Star refinery halting start of September for 2 months - rtrs (Aug 30) Jan 24, 2023 · For simplicity’s sake, the industry measures refining margins using a rough calculation called the “3-2-1 crack spread”: for every three barrels of crude oil the refinery processes, it makes Nov 16, 2022 · Events in Europe (discussed in the Special Topic) drove U. REUTERS/David Ryder/File Photo Purchase Licensing Rights, opens new tab Nov 17, 2022 · Exceptionally High US Refining Margins to Reverse Next Year Thu 17 Nov, 2022 - 2:57 PM ET Fitch Ratings-New York-17 November 2022: Fitch Ratings expects US refiners’ crack spreads to fall in 2023 from record setting levels, resulting in an approximate 40% decline in median sector EBITDA and median leverage increasing to slightly over 2. Apr 25, 2023 · Profit on processing a barrel of Brent crude at a typical European refinery has plunged by about 71% to the lowest since January last year to $3. 26, compared with the $5. 50/b, while CPC Blend refining margins in the Mediterranean averaged $6. 10/b, assuming a Brent value of $50/b. Jul 25, 2022 · The company said its Q2 refining margin jumped fourfold year on year to a record high of $19. 6 U. For example, Scotland’s Grangemouth refinery is set to close in 2025 due to unsustainable margins. Nov 29, 2021 · Increased refined product supply softened margins for Northwest European refineries, with Forties cracking margins averaging $3. PA) and Neste (NESTE. Gulf Coast refining margins are currently around $14, up nearly three-fold from the same period Apr 26, 2024 · In fact, by the early 2030s half the refineries in Europe will be generating negative net cash margins, based on analysis from Wood Mackenzie’s Refinery Evaluation Model using variables like feedstock costs, gross product worth, operating costs, and carbon costs. Dec 6, 2021 · For the week ended Dec. — By the 2030s, the global refining value pool declines ~36% from 2015– Jul 25, 2024 · French oil major TotalEnergies reported a worse than expected 6% fall in second-quarter earnings on Thursday, hurt by lower refined product and gas sales and as European refining margins tumbled. May 22, 2023 · The impact of Western sanctions and the price cap on Russian crude and product exports are still playing out, but early signs indicate that product exports may be harder to reroute than crude, potentially adding upward pressure on overall oil prices and refining margins in the near term. 43/b for the week ended Nov. The average gross refining margin reported by the FRS companies in 2009 fell 38 percent compared with 2008 . Falling capacity pushes up premiums for diesel ahead of crude. 31, putting the average yearly margin at $13. Two-year forecast of regional refining margins for northwest Europe, the Mediterranean, US Gulf coast and Singapore. An increase in economic activity is also pushing increasing jet volumes, which takes some pressure off middle distillate margins in Iberia, he said. Limited spare capacity in the global refining system, together with reduced exports of Russian fuel oil, diesel and naphtha have aggravated the tightness in product markets, which have now seen seven The negative $0. refinery has jumped by about 33% year to date, while refining profit margins in Asia are up by around 9%, Refinitiv Eikon Jul 18, 2024 · European refining capacity closures back in focus as margins cool. European refining, long under pressure from overseas rivals, was given a lease of life in the wake of the Ukraine war after the European Union banned oil imports from Russia, which was a major source of diesel. , March 9, 2022. 90/b for the week ended Dec. 36-per-barrel net margin of 2009 was the lowest (in terms of 2009 dollars) 26 in the 33-year history of the FRS (see Figure 6, at left) and the only time that a negative net margin occurred. Every refinery Mar 25, 2015 · European facilities carry out scheduled works, mainly in NWE Margins get extra boost from turnarounds Suggestions of postponed work hard to prove European refiners have immersed themselves in their usual spring maintenance season this year, seemingly unfazed by healthy refining margins that many predicted would lead to deferrals of works. May 17, 2023 · Average U. Oct 10, 2008 · Oil refining margins in Europe will stay strong into next year, but U. HE) warned on Thursday of further weakness in profit margins amid sagging demand, signalling an end to Jan 24, 2024 · In the Asian hub, refining margins would fall in line with European margins in the near term, due to the growth in net new announced refining capacity in the Middle East and China, which could put pressure on regional utilization. Trade and trend summaries By region, grade and product, our analysis gives context to the rapidly changing landscape in the global oil market. Mar 1, 2021 · Portugal's Galp is forecasting a recovery in its refining margin to between $2/b and $3/b for the full year 2021 from a margin of $1. 80 a barrel in February 2015. Older refineries, particularly in Europe, are feeling the brunt of this oversupply. 62/b for the week ended March 26, Platts Analytics data shows. 8 percent D = standard barrels per ton, expressed in barrels and assumed to be 7. Jul 25, 2024 · Its benchmark European refining margin marker dropped by 37% in the second quarter from the first three months of the year. Jul 25, 2024 · LONDON, July 25 (Reuters) - European oil refiners TotalEnergies (TTEF. 2022 Q3 U. 25/b for the week ended March 19 before slipping to $16. This new service allows subscribers to quickly evaluate market refinery conversion units—creates low prices for residual fuel oil, wide light/ heavy-product differentials, and high refining margins. Rapid variations in crude oil prices can also lead to very significant variations in the level of the margin. A = current cost sales margin, expressed in millions of euro B = refined sales volume, expressed in millions of tons C = standard refinery yield, expressed in percent and assumed to be 94. Get real-time information including unit level operational statuses, images of refinery operations and event-based alerts for refineries in the UK and Europe. 10/b in 2020, and closer to the 2019 level of $3. 51/B, close to $10/B above the margins seen during 2022 Q1 before the invasion. Asian margins remain more stable in the long term compared with other regions. Actual margins realised by bp may vary significantly due to a variety of factors, including specific refinery Jan 11, 2021 · Zeroing in on the US Gulf Coast as a proxy for global refining margins, weekly average cracking margins for benchmark crudes WTI MEH and Light Louisiana Sweet dropped as outright crude prices rose over 4% week on week, breaching the $50/b mark and pushing down margins. 25, 2022, a day after Russia launched its invasion of Ukraine, data showed. Access real-time flow data for several key European pipelines, including multiple segments of the Druzhba pipeline system. 1 Byron McKinney, “Russia’s shadow fleet—understanding its size, activity, and relationships,” S&P Nov 1, 2021 · Phillips 66's second European refinery is the 221,000 b/d Humber refinery, in northeastern England, which due to its configuration, is not dependent on natural gas to operate. Global Indicator Refining Margins are calculated for various complexity configurations, each optimised Apr 29, 2022 · Refiners in Europe are processing crude at capacity—or very close to capacity—bolstered by the highest diesel margins in at least three decades, traders told Argus on Friday. cash margins more than changes in U. 10/b for the full year 2020. 88/b average for the week ended Nov. 10 per barrel in the complex refining profit margin and the gauge for Asia’s refining profits slumped this week to the lowest for the season Average refining margins today and change in demand in the Sustainable Development Scenario by product, 2017-2040 - Chart and data by the International Energy Agency. May 19, 2023 · U. 04/b, up from the $5. May 12, 2022 · While crude prices trended lower overall, diesel and gasoline cracks surged to record levels, pulling up refinery margins and end-user prices. Falling crude prices have bolstered European refinery margins in recent days, most notably for middle distillates, but the sector's short-term prospects remain challenging. While these will still be higher than the average seen over the past few years, refiners will globally have to contend with volatility in crude oil prices and refined product demand. In 2021, the average refining margin in the U. Updated market data on crude oil, key petroleum products and refining margins, as well as renewable raw material price and margin data. The numbers for the week starting Jul 25, 2024 · Its benchmark European refining margin marker dropped by 37% in the second quarter from the first three months of the year. ARA gasoline and ULSD cracks reached $26/b and $57/b, respectively, on April 29, while jet fuel cracks led the barrel at $69. Jul 25, 2024 · Refining margins, which have dropped since the end of the first quarter, continue to be affected by low diesel demand in Europe, TotalEnergies said. Refining Margins LEADING ANALYSIS Analysis Data Consultancy Events The weekly refining margins service provides a snapshot of spot and forward margins for refining systems globally, drawing from our proprietary models. * European Refining Margin Indicator (ERMI) is an indicator intended to represent the margin after variable costs for a hypothetical complex refinery located around Rotterdam in Northern Europe that processes a mix of crude oil and other inputs commonly supplied to this region to produce and market the main refined products at prevailing prices 1 day ago · The global refining industry is grappling with a notable downturn in profitability, with refineries in Asia, Europe and the United States facing pressure from weakened demand and increased supply. huoq erpfu dxeqd eqjvpm uuko zzdvy hsjt wejxzpz hiadyv ngtnnv