LONDON: Northwest European gasoline refining margins rose on Tuesday to above $3 a barrel, supported by encouraging prospects of an effective COVID-19 vaccine, although weak demand due to renewed lockdowns capped the gains.

European gasoline stocks rose more than 1% in October month-on-month, as new lockdowns curbed mobility and weakened exports to the United States, Euroilstock data showed on Tuesday. Inventories were at almost 117 million barrels in October, almost 9% higher than the same period last year.

Refinery crude intake in Europe remained weak at 8.5 million barrels per day (bpd) in October, almost 2% lower month-on-month and 14% lower year-on-year.

Renewed restrictions in Europe and the United States to combat the coronavirus outbreak have slowed down the pace of fuel demand recovery, offsetting a rebound in Asian economies where consumption has almost returned to pre-COVID levels.

Goldman Sachs cut its 2021 Brent crude price forecast but said a surge in COVID-19 cases in Europe and the US only represented a “speed bump” before a potential vaccine and continued supply cuts by top producers tightened market fundamentals.—Reuters