Bulging product stocks pressurise refinery margins

Profits for processing crude into refined products have fallen far from last year’s highs. Europe in particular is feeling the pressure

REFINING margins across the globe are under pressure, buckling under the weight of bloated stocks. Last year's slump in Brent prices was especially good for European product owners when margins rebounded after years of weakness. But now cracking margins across the globe are under pressure and European refineries in particular are struggling to make processing crude in products pay. Margins are the weakest in the Mediterranean. Profits for processing Es-Sider into refined products slumped to just $1.36 a barrel ($/b) for the week ending 29 July, data published by investment bank BNP Paribas show. That's down from $3.59/b at the beginning of June and compares to an average of $3.08/b in Q1 and