As earnings season gets into full swing, a casual glance at the fundamentals shows there is little for refiners to be excited about. Excessive production in the first half on the back of wider margins has resulted in a glut of refined product that is now coming back to bite. Whatever numbers are issued, it is likely to be all downhill from here. "East coast gasoline stockpiles have grown substantially in the past six months due to the oversupply in the market and imports from Europe," said Bloomberg Intelligence Analyst Gurpal Dosanjh. "This oversupply will likely weigh on Atlantic Basin refining margins for the remainder of 2016, leading to run-cuts after summer."
European gasoline stockpiles have soared. They are currently at 1.35 million metric tonnes, about 40 percent above the five-year average.