European Refining & Biofuels: First break in seven-week uninterrupted rally – Weekly margins tracker

Research evidence excerpt

European Refining & Biofuels: First break in seven-week uninterrupted rally – Weekly margins tracker

Global Research

27 July 2026ab

European Refining & Biofuels Equities

Europe including UKFirst break in seven-week uninterrupted rally –

Weekly margins tracker Oil Companies, Secondary

Anna Kishmariya

Analyst

anna.kishmariya@ubs.com

Refining margins keep climbing up to new highs +44-20-7568 7999

Refining margins posted a first w/w decline after the seven-week uninterrupted rally. Henri Patricot, CFA

The move down was primarily driven by Dated Brent increase of ~$12/bbl w/w while Analyst

products markets remain very tight. The European composite refining margin per our henri.patricot@ubs.com

tracker decreased by $3.93/bbl w/w to $36.91/bbl. The largest moves down were seen +33-14-888 3033

in fuel oils, LPG and gasoline. Gasoline margins in particular were down by $6.8/bbl to Joshua Stone

$39.56/bbl. Middles distillates margins remained very strong, with diesel margins down Analyst

only $1.2/bbl to $70.0/bbl. 3QTD composite margin has averaged $37.1/bbl vs. UBSe joshua.stone@ubs.com

$24.6/bbl. Please note that last week we updated our supply/demand balances and +44-20-7901 5588

increased our refining margins estimates for 2H26 and 2027-2028 (see our note). Nayoung Kim

Neste's renewable margin moves up w/w nayoung.kim@ubs.com

Neste's Renewable Product (RP) margin increased w/w: +$71/t to $1,206/t amid higher +44-20-7568 4010

diesel prices in Europe and the US. The European spot margin also moved up: +$122/t to Ellinor Cederstroem Palliotto

$1,041/t. Neste's RP margin 3QTD has averaged $1,097/t vs. UBSe $995/t and $941/t Associate Analyst

VA cons. Last week Neste published 2Q results, see our review note. ellinor-cederstroem.palliotto@ubs.com

+44-20-7567 1823