...European Refining Margins Still Strong Despite Decline Towards End of 3Q15 European refiners' margins strengthened in 3Q15. North-west European and Mediterranean margins were 42% higher qoq. PKN Orlen in its trading update reported a similar 50% increase in margins. Fitch views the growth in demand for fuel products as the main reason for this rise. Higher Demand at the Pump: Low oil and oil products prices coupled with GDP growth helped to reverse the steady declines in European consumption of recent years. Demand for gasoline and diesel increased by 5% and 2.8% in 1Q15 and 2Q15 qoq, respectively. Importantly, drivers rather than traders were the main source behind the growth. This also highlights the higher importance of product prices to demand than structural factors like increased engine efficiency and the strength of economic growth, which have been cited as the key factors explaining poor fuel demand in Europe in recent years. Lower Margins Towards End of Driving Season: Refining...
