SAAFY - Self sanctioning lifts European diesel margins US refiners stand to benefit
Self sanctioning reported by Energy Intelligence Thursday indicated that oil product exports from Russia had fallen by ~1mb/d (product plus crude exports fell ~2.5mb/d); oil prices rose, but oil product margins in Europe are spiking as well. European oil refiners have struggled since the pandemic, first as a result of lower demand, and subsequently as higher power and natural gas prices increased the cost of doing business; Finland's Neste (OTCPK:NTOIF) shares are down ~40% from recent highs, while Italy's Saras (OTCPK:SAAFY) shares are off 75% from pre-pandemic levels. During Q4 results Phillips (NYSE:PSX) VP of refining said, "high natural gas prices are going to continue for a while in Europe and it is really going to strain kind of that bottom quartile of refiners that are left." With expectations low for European refining, and rising product margins, perhaps the pure-play European refiners provide the best risk-reward; however, US refiners with
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Self sanctioning lifts European diesel margins, US refiners stand to benefit