The current state of the crude oil and refining industry in the Northern
Atlantic basin has led to excess European gasoline production
playing a vital role, says Jeffrey Kerr, a New York-based
analyst with GlobalData.
That additional European production is saving the US East
coast from shortages, he said.
For its part, Europe has
also seen its share of refinery closures over the past two
A combination of high crude oil prices and relatively low
refined product prices, as well as dismal gasoline and middle
distillate demand growth prospects, have resulted in a number
of high-profile refinery closures and company
bankruptcies, Kerr noted.
But the US East coast refining market has been impacted by
the same factors, with large refineries in the Philadelphia
area shut down, threatened to be shut down, or sold to new
That has kept the supply of motor fuels tight amid the
traditional summer driving season, when gasoline demand usually
rises, Kerr explained.
While its not new for Europe to send its excess
gasoline to the US in the summertime, the magnitude of those
shipments this year is much higher, said Kerr,
GlobalDatas senior analyst of downstream oil and gas.
The shut refineries in the Philadelphia area and the
Caribbean have really changed the dynamic of the East Coast
marketplace, causing wide swings in cash market
Since the East coast gasoline cash market sets the price for
the rest of the US through the futures market, European
refiners are having a direct impact on US gasoline markets from
coast-to-coast, he said.
For more details on the report, visit GlobalDatas
website by clicking here.