How M&A markets are passing the refinery bucks

Downstream oil international focus: We take a closer look at the opportunities and challenges around fuel price liberalisation in Mexico and Argentina. European fuel retailers responded to a sharp increase in the wholesale cost of gasoline during September by raising prices at the pump to keep margins buoyant. Retail diesel margins came under more pressure however, as pump prices were unable to keep pace with rapidly rising wholesale prices. A stronger euro versus the US dollar provided some support. Our North West Europe (NWE) Brent and Med Urals FCC gross refining margins strengthened in September supported by refinery shutdowns in Europe and the continued impact from Hurricane Harvey striking the US Gulf Coast.

OMV has announced the sale of Petrol Olifisi, its standalone fuels marketing business in Turkey to oil trader Vitol, for €1.37 billion, ending several years of speculation as to the future of the business. European refining margins and crack spreads strengthened in February compared to the previous month due to strong global product demand, a number of planned and unplanned refinery outages, as well as bad weather in the Black Sea. Marketing margins were broadly flat on a Europe average basis with increases in France, Germany and the UK being offset by declines elsewhere.