Europe downstream oil in brief: pump prices keep climbing but why have retail fuel margins collapsed?

Our monthly benchmark gross retail fuel margin for Europe declined further in May, reaching a five year low. Steadily rising crude prices have supported higher wholesale gasoline and diesel prices but fuel retailers have struggled to pass on these increases to the end-consumer. Our North West Europe (NWE) Brent gross refining margin increased in May driven by stronger product cracks, apart from jet. On the other hand, the Med Urals FCC gross refining margin weakened as demand for Urals crude increased when refineries returned from maintenance. Product prices lagged behind the increase in crude price in May which resulted in weakening cracks across the barrel with the exception of fuel oil.