European oil product markets: 2015 in review & what to look for in 2016
We expect 2016 to be another good year for refiners. Crude prices are expected to remain low for most of the year with crude supply remaining in surplus well into H2 2016. However, product demand growth is expected to slow and the surplus of crude stocks will increasingly turn into a surplus of products, with excess middle distillates, in particular, weighing on margins. As a result, margins in 2016 should be slightly lower than in 2015.