Europe downstream oil in brief: is automation grabbing Spain's fuel retail market by the horns?

The Spanish fuel market is witnessing a surge in automation as fuel retailers are increasingly adopting a 'low cost' model. This was championed by the hypermarkets but has more recently been rolled out by new independent players with networks of automated, remotely operated service stations. In five years their numbers have grown from 1% to 5% of the total Spanish service station network. As legislative barriers are eased and public trust is gained, we expect to see further penetration of this model across Spain. It is likely that this trend will gradually play out in other mature European markets that currently have large networks with low levels of automated sites. Our North West Europe (NWE) Brent and Med Urals FCC gross refining margins decreased slightly in June, remaining below the historical five year average. Refinery margins are expected to recover slightly in Q3 as summer demand peaks for the driving and cooling sector.