Sole national refiner, Galp Energia, dominates most domestic oil product markets in Portugal, a position which is supported by its control over much of the country’s downstream logistical infrastructure. Following extensive upgrades at itstwo oil refineries, Sines and Porto, Portugal's production of gasoline and middle distillate fuels is surplus to domestic demand, resulting in a large net export position for these products. Aside from Galp, the remaining downstream market share is dominated by BP, Repsol and Cepsa. These players source product locally from the Galp refineries - sometimes as swap agreements with Galp in Spain - and also import from their own refineries in neighbouring Spain. Following several years of decline, oil demand in Portugal recovered in 2014 and 2015 as the recovering economy was further stimulated by low oil prices. We expect structural decline in most major oil products demand over the longer-term.