(Reuters] -Valero Energy Corp announced Tuesday a quarter-end profit, compared to a loss a previous year. This was due to strong refining margins and higher demand for refined products.

While global fuel demand rose to levels nearing pre-pandemic, overall supplies were tightened by the Russia-Ukraine War. This boosted margins on gasoline and diesel.

A rise in European prices has also helped refiners, which in turn have reduced worldwide distillate inventories.

Valero was the first U.S. refiner that reported quarterly results. Its refining margin increased more than twice to $3.21Billion from last year.

Joe Gorder, Chief Executive Officer, stated that the fundamentals which drove strong results during March’s first quarter continue to be a favorable backdrop for improving margins.

For the three months ending March 31, the net profit attributable the company to stockholders was $905 Million, or $2.21/share, compared with an income of $704M, or $1.73/share, in the prior year.