Refiners' margin call
They made hay while the sun shone, but rain is on the way
THE PROFITS to be had from refining crude oil into fuel are weakening, and US demand for gasoline probably won’t come to the rescue, because stocks are bulging. In Europe, refining margins are under pressure, as Brent cracks are expected to fall to $2.50 a barrel in the third quarter, according to data from Energy Aspects. That’s down from around $4/b in Q2 and $5.80/b at the same time last year. Margins in the Mediterranean will fall into negative territory – meaning refiners would pump at a loss – by the fourth quarter. That’s down from average Urals hydrocracking margins of around $2.75/b in Q2 and $5.54/b in Q4 2015. European hydroskimming margins have been in negative territory since 20
Also in this section
13 March 2026
Brussels is again weighing a cap on gas prices amid the Hormuz crisis, but the measure could backfire by deterring the LNG cargoes Europe urgently needs
12 March 2026
Emergency oil stocks provide a last line of defence to oil market shocks, so the IEA’s unprecedented 400m bl release represents something of a double-edged sword
12 March 2026
LPG could rapidly expand access to clean cooking across Africa and prevent hundreds of thousands of deaths from indoor air pollution each year, but infrastructure shortages and regulatory barriers are slowing investment and market growth
11 March 2026
Missiles over Dubai and disruption in Hormuz are testing the emirate’s reputation—and shaking the energy hub at the centre of the Gulf economy
