Refining margins tick up as apparent attack knocks out Russian refinery

Jun. 22, 2022 1:55 PM ETREPYY, VLO, MPC, PSXBy: SA News Team215 Comments

Industrial fire training for refinery or chemical plant fire brigade

Dale_Stagg/iStock via Getty Images

  • 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.

Recommended For You

Comments (215)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.