European Fuel Prices Defy Crude Oil Trend as Refining Costs Bite
The price of petrol and diesel in Europe has remained stubbornly high despite crude oil prices not reaching record highs. Brent crude, the international benchmark, has traded between $73 and $126 a barrel since February, but European fuel prices have been influenced by refining costs and product supply issues.
According to data from the European Commission's Weekly Oil Bulletin, petrol averaged €1.95 a litre across the EU in early September, about 4% below its June 2022 peak of €2.03. Diesel averaged €2.04, around 3% below its record of €2.11 in April.
The main reason for this discrepancy is that refineries are running at high capacity coupled with low inventories, making it difficult to meet demand. European refinery runs were around their highest levels in three to four years, and US refinery utilisation reached about 98% in late August.
Analysts predict that petrol prices could receive some seasonal relief as summer driving demand fades, but diesel margins may remain elevated through autumn and into winter due to the approaching maintenance season and potential disruptions to US Gulf Coast refineries.