On Oct. 15, French major Total reported that its European refining margins indicator (ERMI) had risen to $54.8/mt (about $7.48/bbl) in 3Q 2015, up from $54.1/mt ($7.38/mt) the quarter before. The indicator, which approximates margins at a hypothetical refinery in Northwest Europe, has risen to an all-time high (or at least since 2003 when Total began tracking the data) from a four-year low in 1Q 2014. Sources say that margins will soon come off of that extraordinary high, but analysts and executives alike say that the oudook for the sector still looks considerably brighter than it did before the surge. "This year the refining margin is exceptionally high," said Neste CEO Matti Lievonen, whose company saw margins of $10.83/bbl in 2Q 2015. "Next year it should be healthy, but not of the same magnitude."
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