•Seen higher growth in distillates worldwide
compared to gasoline in recent years
•Europe is a key factor in growing shift towards
•May not have permanent distillate price parity
with gasoline, but trends favor higher distillate
•Frequency and duration of future
distillate price strength will influence type of refinery
SWe have seen some recent strong growth in
distillate demand and a growing imbalance in Europe – a regionthat relies increasingly on distillate
imports, and produces growing amounts of excess gasoline.
SWhile we may not have a permanent shift in
distillate balance and price relative to gasoline, we have been trending this
direction for some time.Exactly how
the distillate market might evolve is still up in the air, and the way in
which it evolves will influence the types of refinery investments that are
made as well – particularly in Europe.