ING expects weaker European refining margins

摘要

Europe's refiners are increasing oil product hedging on expectations of weaker margins, according to Dutch bank ING's head of commodities strategy Hamza Khan. Stronger margins typically encourage refiners to increase hedging activity - often by trading crude and product swaps - in an effort to lock in higher prices. But European refining margins will be weighed down by strong Middle Eastern and US product exports, and increased production of products in Asia- Pacific that eat into regional demand there, Khan said.