2020 – The Story So Far and What’s Next for Crude and Product Markets
Join us to discuss our view of the oils market during IP Week in 2020. Oil demand growth has been weak in 2019, with the OPEC+ group surprisingly extending their cuts by a further 500 kbd through to end of Q1 in 2020. In spite of that, fears of sustained weak demand growth have restricted Brent to mid US$60/bbl. The degree to which the growth trajectory of US tight oil slows will be a critical factor in crude oil pricing in 2020. The refining industry suffered record low margins in the latter few weeks of 2019, as IMO preparations crashed the value of high sulphur fuel oil, with no corresponding uplift in distillate cracks as compliant low sulphur fuel oil stocks have been depleted. Crude oil differentials responded, but with a lag, so hitting refining margins hard, with the gift of Christmas being run cuts.
The implications of the IMO regulation on the refining sector will become clearer as time passes, particularly over the pricing relationships of compliant low sulphur fuels and the associated change in trade flows for high sulphur residues. At the Forum, we will discuss our view of the current market fundamentals and the outlook for the coming weeks/months of 2020 and 2021, putting Europe within a global context.
Speakers will be Wood Mackenzie’s sector experts on crude oil markets and refining, joined by Hillary Stevenson, along with Trafigura’s Chief Economist as a guest speaker.
For more information and to register, please click here!