Energy, EU – Baltic States, Lithuania, Oil, Transport

Orlen's average margin in October hit its lowest level this year.

"The decline in margins is due to lower fuel consumption, which is usually seen in the fall-winter season. This level is likely to hold up to the end of the year. The decline in the margin is offset by a large difference between Brent and Urals prices," Orlen Lietuva spokesman Mindaugas Linkaitis told BNS.

Nafta.wnp.pl has reported that Orlen's average refining margin in October was 4.9 US dollars per barrel. The last time the margin was low was in December 2014.

According to the Polish news website, Orlen's refining margin in October was more than a third lower than that in September, at 7.70 per barrel, and only 2 percent higher than in October 2014.

Also, October was the first month this year that the margin did not differ much from last year's levels. The average margin in the three quarters of this year was around 6.28 dollars higher than that in the same period last year.

The highest year-on-year difference, at over 9 US dollars, was recorded in June, when the margin was 11 dollars per barrel, compared with 1.6 dollars a year ago, and the lowest difference, at 2.2 dollars, was seen in September, when the first signs of weakening emerged.

Orlen CFO Slawomir Jedrzejczyk has said that the efficiency threshold for Orlen Lietuva is a refining margin of 4 US dollars per barrel. This may mean that if the margin fell bellow that threshold, a possible closure of the Lithuanian crude refinery would be considered.

Poland's Orlen is the sole owner of Orlen Lietuva.