Insight
Downstream oil in brief: will lower oil prices benefit fuel retailers?
Report summary
This is the second oil price crash that the industry has faced in the past decade, but this time is very different. Back in 2014, integrated oil companies were able to benefit from a sharp rise in refining margins and a rising oil demand outlook. This time around, oil demand is significantly weaker as the coronavirus pandemic depresses global economic growth. Fuels marketing will provide some stability, but we are unlikely to see the returns from the previous price crash.
Table of contents
- What typically happens when oil prices crash, and how is this time different?
- What impact will coronavirus have on European road fuel demand?
- What are retailers doing to mitigate the risk posed by weakening demand?
- Summary
- Brent FCC margins to remain weak as coronavirus impacts mobility and industrial activity despite the oil price collapse
- European fuel margins supported by lower oil prices, but non-fuel margins pressured as travel restrictions limit discretional driving
Tables and charts
This report includes 8 images and tables including:
- NWE refining margins
- MED refining margins
- NWE diesel / jet crack spreads
- MED fuel oil crack spreads
- Italy: gasoline gross retail fuel margin
- Italy: diesel gross retail fuel margin
- UK: gasoline gross retail fuel margin
- UK: diesel gross retail fuel margin
What's included
This report contains:
Other reports you may be interested in
Insight
Petroleum fiscal month in brief: flexible terms on offer in the UAE
First impressions suggest there will be lower upfront taxes to make more projects viable on a post-tax basis.
$1,350
Commodity Market Report
France downstream oil long-term outlook
France's retail fuels market is highly competitive, with hypermarkets exerting downward pressure on margins by selling fuel at a discount.
$6,750
Commodity Market Report
India retail fuels long-term outlook
India is set to overtake China as the world’s largest refined oil product demand growth centre post-2025
$4,750