Refining Margins Soar as Global Oil Product Markets Tighten

Group 1 - Refining margins in the U.S., northwest Europe, and Asia have reached two-year highs due to tightening diesel and gasoline markets, with no immediate relief in sight [1][3][7] - The EU's upcoming ban on imports of products made from Russian crude oil, effective January 21, is expected to significantly disrupt the market [3][4] - The decline in refining capacity in the West, due to permanent closures of refineries in Europe and the U.S., has contributed to strengthening margins, while new integrated complexes have been added in the Middle East and Asia [6] Group 2 - Analysts predict that while a crude market glut may depress benchmark crude futures into 2026, the strength in gasoline and middle distillates mitigates the bearish outlook [2] - U.S. sanctions on Russian oil producers like Rosneft and Lukoil are complicating global product flows, as buyers seek to avoid secondary sanctions [5] - Operational challenges at Africa's Dangote refinery, including strikes and suspected sabotage, are impacting its production capacity [5]