Refining margins sunk world-wide last week, with simple refineries particularly hard hit by a recovery in crude prices, Reuters data showed on Monday.
Simple Rotterdam refineries running Brent crude showed last week's negative margins were no blip, as they recorded losses of $1.71 a barrel - down more than a dollar from the week before.
Traders say simple refineries, such as Preen's Gotherburg and ConocoPhillips's Wilhelmshaven, are under pressure to cut runs since refining crude is actually costing them money.
Rotterdam refineries with cracking units were hit almost as hard, as margins sank to just $1.87 a barrel, down from $2.31 a barrel the week before and barely a third of their 365-day average.
Much of the pressure on margins comes from fuel oil, which is approaching record lows with a crack - or discount to Brent - of around -$25.20 a barrel, its lowest since August. Plentiful supply from Russia and a closed arb to Asia have kept fuel oil prices very weak. Mediterranean refineries running Urals crude, which is also heavily weighted towards fuel oil, have seen margins suffer in parallel.
Simple Med refineries' profits turned negative, dropping $1.16 to an average for the last week of -47 cents. Med refineries cracking Urals crude were making $2.96 a barrel, down 61 cents on the week before.
Singapore refineries were no exception to the gloomy picture. Refineries cracking Dubai crude saw margins fall 28 cents to $3.92, while the beleaguered simple refineries' margins plunged 85 cents further into the red to end at -$2.08 a barrel.
Refineries in the US Gulf have held up better than their European and Asian counterparts, but they also saw profits fall over the week. Profits at Gulf refineries cracking Brent crude fell 71 cents to $4.74. Profits for those cracking light Texas crude dropped $2.17 a barrel to $6.23.