According to trade data reviewed by, European gasoline refinery profits surpassed $62 per barrel on Wednesday. Fuel supplies are being squeezed due to conflicts in the Middle East, Ukraine and elsewhere.

Eurobob E5 barges of physical gasoline were trading at a price premium of approximately $62,07 per barrel to Brent futures around 1420 GMT. This is up from a $55.62 on Tuesday. The refining margin for Wednesday may be affected by the?daily settle.

LSEG data show that at this level, European gasoline is just below the record high Eurobob E5 margins of $62,10 reached in June 2022, when oil prices were at their highest after the beginning of the Ukrainian war.

Goldman Sachs analysts wrote in a report last week that "rising strikes against refineries in the Middle East, and Russia has further restricted already stretched global refining capacities. This is pushing refined product?margins up to new heights."

European gasoline ?refining margins have been further supported ?by low stocks in the Amsterdam-Rotterdam-Antwerp trade and storage hub (ARA), with low water levels having constrained inflows of barges along the Rhine, compounding already tight supply in the Atlantic basin, said Janiv Shah at consultancy Rystad Energy.

According to Dutch consultancy Insights Global, ARA gasoline stock levels were the lowest they've been since September 2021 at just 752,000 metric tonnes last week.

Europe is a net gasoline exporter, mostly to the U.S. where summer driving season represents the peak of the fuel's demand each year. Summer demand is usually followed by refinery maintenance in the autumn, which could further restrict supply.

"There is a growing fear that the situation will worsen if the?U.S. The situation is likely to worsen if refiners begin their normal September maintenance. "If they delay it, the chances of refinery malfunctions will increase," said PVM analyst Tamas Variga.

DIESEL HOLDS RECORD HIGHS

On Tuesday, European diesel futures hit a record-high of $78.91 per barrel compared to Brent futures before falling back down to $77 at 1600 GMT on Wednesday.

The margins on diesel have risen as European 'importers' compete with buyers that previously purchased Russian fuel but now have to buy elsewhere after Moscow banned exports. Rystad’s Shah also cited the disruption in supply caused by conflict in Middle East.

(source: Reuters)