Free Trial

Strong Gas Prices Adding to Refining Costs: FGE

REFINING

Strength in natural gas prices may result in an increase of fuel oil consumption as a substitute, particularly in Asia and Europe according to FGE earlier this week.

  • Fuel-oil demand in Europe could increase by 60kb/d, but gas prices are still far below those for 1,000ppm gasoil.
  • The strength adds costs for refiners to about 1.50$/bbl at 100$/bbl oil equivalent levels.
  • “Conversion setups refining most crudes can still cover it easily with diesel cracks where they are.”

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.