MARKET EYE: Europe's Balancing Act

摘要

Despite continued poor end-user demand, Europe's gas oil markets have found some equilibrium of late. Support has come from a combination of lower European output - on the back of refinery run cuts and unplanned outages - and the absence of arbitrage barrels from the US and Asia. The large overhang of product still in floating storage off Europe will continue to cast a shadow over the market as it moves into the winter heating season. But this is balanced somewhat by heavy refinery maintenance in the next few months, raising the prospect of a soft landing for the market.