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Downstream oil in brief: will midstream players benefit from this oil price crash?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
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 the following images and tables:
- 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:
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