By YANGE IKYAA
Refinery margins on the US Gulf Coast versus WTI and in Singapore versus Oman showed strong performance in January, gaining $1.42 per barrel and 50 cents per barrel respectively, month-on-month, as global product inventory levels reached multi-year lows.
However, in Europe within the same period under review, refinery margins lost $1.20 per barrel versus Brent, as they were affected not only by higher crude prices, but also record-high natural gas prices, as nearly 80% of all European refineries depend on natural gas to power their plants.
This is according to the report by OPEC on product markets and refining operations for the month of February, which was released on Thursday.
The report also shows that, in all regions, the strongest positive margin contributor was gasoil, as inventories for that product continued to fall, leading to a higher premium relative to crude oil.
At the same time, preliminary data shows global refinery runs rose only slightly, limited by a winter storm that affected operations in parts of the US, hampering a higher upturn in total refinery intakes.