Northwest European gasoline refining margins moved higher on Tuesday, rebounding after a pronounced drop in the prior session. The margin increase was approximately $1.78, taking the level to $22.36 per barrel as trading volumes rose during the day.
Market participants reported around 9,700 metric tons of E5 gasoline barges changing hands in the Argus window. Sellers in that session included Equinor, Trafigura and Exxon, while Shell, MB Energy and Varo were noted buyers.
In the Platts window, BP sold an E5 barge to Varo. In addition to the E5 activity, a further 3,100 tons of E10 gasoline barges were traded, with Petroineos recorded as the seller to MB Energy.
On the supply side, consultancies and sources indicated that China’s state planner has approved measures allowing certain independent refiners to reduce output beginning in June. Those sources said the step reflects Beijing’s confidence in handling a potential oil shock tied to the closure of the Strait of Hormuz.
Separately, Kpler data showed that gasoline and blending component exports from the EU-27 and the UK averaged 811,000 barrels per day in May, down from an average of 954,000 barrels per day in April.
Market context and mechanics
The sessions in which the barges traded - Argus and Platts - remained active, with a mix of major trading houses and refiners participating on both the sell and buy sides. E5 and E10 volumes were explicitly recorded, underscoring the role of barge flows in setting short-term regional gasoline balances.
What the data show
- Margins rose by roughly $1.78 to $22.36 per barrel on Tuesday.
- About 9,700 metric tons of E5 gasoline were traded in the Argus window; sellers: Equinor, Trafigura, Exxon; buyers: Shell, MB Energy, Varo.
- BP sold an E5 barge to Varo in the Platts window; 3,100 tons of E10 traded with Petroineos selling to MB Energy.
- China permitted some independent refiners to cut output starting in June, per consultancies and sources, a move linked to managing a potential Strait of Hormuz-related oil shock.
- EU-27 and UK gasoline and blending exports averaged 811,000 bpd in May, down from 954,000 bpd in April, per Kpler.
Implications
The observed rebound in margins occurred alongside clearly recorded barge transactions and shifts in export volumes. The combination of trading activity and changing supply signals will be monitored by market participants assessing near-term refining economics, regional supply balances and shipping demand.