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
21 April 2020
Downstream oil in brief: will midstream players benefit from this oil price crash?
Insight
Downstream oil in brief: will midstream players benefit from this oil price crash?
Contango sees traders looking to make profits on storage plays on the futures market.
$90025 May 2022
Downstream oil in brief: will high pump prices impact demand?
Insight
Downstream oil in brief: will high pump prices impact demand?
European retail fuel prices are expected to continue to remain high despite the introduction of tax cuts by several countries.
$90020 October 2020
Downstream oil in brief: CLH to buy 15 terminals in a bid to diversify
Insight
Downstream oil in brief: CLH to buy 15 terminals in a bid to diversify
CLH boosts its capacity to store chemicals and biofuels as it seeks to diversify its portfolio in the face of the energy transition.
$900
