French energy group Total reported that its refining margins slipped into negative territory in the July-September quarter in Europe. Total’s European refining margin was -$2.70/ton (-$0.37/barrel) in the third quarter, falling sharply from $14.30/ton in the second quarter and $47.40/ton in the third quarter of 2019. The negative margins became the latest discouraging indicators amid the current downturn in the energy market due to the coronavirus pandemic.
Previously, Spain’s Repsol and Portugal’s Galp also reported negative margins for the third quarter in Europe. Conversely, BP said that its global refining marker margin increased in the quarter. However, it is still below levels from a year earlier, and BP’s European refining margins were the worst compared to other operation areas.
The International Energy Agency said that global refining throughput would increase by 2.1 million bpd quarter-on-quarter to 75.8 million bpd, reduced from IEA’s previous projection of 76.1 million bpd. For 2021, global refining throughput is expected to increase by 4.9 million bpd, partially reverse the 7.2 million bpd lost this year.
