Our North West Europe Brent and Med Urals FCC gross refining margins fell sharply in December as high levels of product output coincided with the seasonal lull in demand. Margins were further undermined by a steep increase in crude prices reflecting tighter crude supply. Overall European retail fuel gross margins for gasoline and diesel were lower and flat respectively on a volume-weighted average basis. Despite lower wholesale prices, Gasoline margins were weaker, as retailers were forced to reduce pump prices amidst competitive pressures. Although diesel wholesale prices increased in December, margins remained flat on an aggregated basis, largely due to price support at the pump.