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Market Chatter: Refinery Disruptions Lift European Diesel, Gasoline Margins

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European fuel markets remained under pressure this week as refinery attacks across the Middle East and Russia squeezed supplies, allowing refiners to sustain exceptionally strong margins for diesel, gasoline and jet fuel, Reuters reported Thursday, citing LSEG data.

Fresh disruptions at key refining sites in Saudi Arabia, Kuwait and Russia reduced fuel output and pushed European diesel processing margins to a record $74.66 per barrel. Gasoline margins also stayed close to four-year highs, while jet fuel margins remained above the $80/bbl mark.

The shutdown of Saudi Arabia's Jizan refinery, outages at Kuwait's Al-Zour complex and another drone-related disruption at Russia's Perm refinery have compounded supply concerns. Russia's fuel export restrictions have added to the tightness in global refined product markets.

Jeffrey Baird, founder of investment firm Merritt Point Partners, said refining capacity shortages have become a bigger market concern than crude supply, as continued refinery attacks keep global fuel markets tight.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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