European gasoline refining margins fall to 27 month lows

18-Mar-11

Gasoline refining margins in Europe fell to 27 month lows of around minus $4.43 a barrel along with falling naphtha cracks, as per Reuters. Japan is one of the largest importers of naphtha, and the current disaster has pressured light-end refining margins- this is because more refiners favour middle distillates over light ends on expected increased demand from Japan. Japan's damaged nuclear capability is expected to create extra demand for natural gas as well as fuel oil and gas oil as the country looks for alternative power generation. Naphtha refining margins slumped even further, to around minus US$8.49 a barrel late on Wednesday.