Industry Note No. 20 - European Product Balances Under Pressure

The European refining sector over performed expectations this year as regional crude supply rose on the back of higher output in major producing nations, pressuring feedstock costs for refiners and supporting margins. According to JBC Energy, it is estimated that the European region (Northern Europe + Mediterranean) will produce 22.9 million b/d of refined products in 2017, while demanding 20.9 million b/d, which would imply an 182,000 b/d rise in product balances year-on-year, basis 20.7 million b/d demand and 22.5 million b/d supply in 2016.