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Downstream oil in brief: will lower oil prices benefit fuel retailers?

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20 March 2020

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:

  • Document

    Downstream oil in brief: will lower oil prices benefit fuel retailers?

    PDF 1013.20 KB

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