Insight

Downstream oil in brief: will midstream players benefit from this oil price crash?

Get this report

$900

You can pay by card or invoice

Contact us

Submit your details to receive further information about this report.

For details on how your data is used and stored, see our Privacy Notice.
 

- FAQ's about online orders
- Find out more about subscriptions

21 April 2020

Downstream oil in brief: will midstream players benefit from this oil price crash?

Report summary

As the current situation of oversupply and weak demand unfolds in the oil market, the futures curve has switched from backwardation to contango. This means that spot prices for both crude oil and refined oil are priced lower than futures contracts. Contango creates opportunities for midstream players as traders seek to make storage plays on the futures market. So, will midstream players emerge as the winners of this price crash?

Table of contents

  • Contango creates a surge in demand for storage at a time when inventories were already high
  • If there is limited capacity to store oil onshore, is the use of floating storage a viable option?
  • How long is this expected to last and who stands to benefit the most?
  • Summary
  • Brent FCC margins falter in March as demand is slashed and oil prices collapse
  • Gross retail margins spike but earnings under pressure as retail fuel sales decline

Tables and charts

This report includes 9 images and tables including:

  • NWE refining margins
  • MED refining margins
  • NWE diesel / jet crack spreads
  • MED fuel oil crack spreads
  • Gross marketing margins March 2020
  • Ireland: gasoline gross retail fuel margin
  • Ireland: diesel gross retail fuel margin
  • Slovenia: gasoline gross retail fuel margin
  • Slovenia: diesel gross retail fuel margin

What's included

This report contains:

  • Document

    Downstream oil in brief: will midstream players benefit from this oil price crash?

    PDF 1.02 MB

  • Document

    Refining Margins.xls

    XLS 331.50 KB