Not registered? Receive daily email alerts, subscriber notes & personalize your experience. Register Now Spain's largest refiner Repsol said it sees refining margins widening in the remainder of the year amid a pickup in activity after the country's state of alert ended May 9. The refining margin is seen averaging $2/b for the full year, rising from 20 cents/b in Q1 and around $1.20/b in April. The company said it made a premium of 60 cents/b over benchmark in Q1 but did not make a forecast for a premium going forward. Its Spanish refinery utilization rate was 76.3% in Q1, down from 82.4% in Q1 2020 but higher than a 73.7% rate in fourth-quarter 2020. The company has reacted by closing a portion of its capacity through 2020 and 2021, taking its Spanish conversion rate down to 81.6% in Q1 from 100.4% in Q1 2020. Repsol also changed some of its contracted positions from a CIF basis to an FOB basis, which has also depressed margins. But while three refineries have temporarily laid off workers, the company does not expect any of them to be threatened with closure.