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- Two drones flying from the direction of Ukraine caused an explosion at Russia's Novoshakhtinsk oil refinery Wednesday, according to sources cited by Reuters.
- The refinery has capacity to process 7.5mtpa, or ~150kb/d.
- European gasoil (diesel) margins closed in London at $55.30/b, ~$1 below all-time highs seen Monday.
- European gasoline margins closed in London at $44.16/b, up ~10% from Monday's close.
- Staff has been evacuated and no estimate of return to service has been provided.
- With refining margins globally at or near record highs, European refiners like Saras (SRS) and Repsol (OTCQX:REPYY) are well positioned to capitalize; US refiners like Valero (VLO), Marathon (MPC) and Philips (PSX) also stand to benefit from improving fundamentals, though policy remains an overhang for the sector.