BMI View: Fuels consumption growth will relapsein 2017 as rising fuels prices add to the structural headwinds facing European fuels demand. Demand for Europe's two main consumer fuels- gasoline and diesel - have seen incremental growth in the first half of 2016 with diesel being the clear outperformer. The combinedfuels demandin Western Europe's top five markets in H116 was 5.058mn barrels per day (b/d) up from 4.996mn b/d in H115 and 4.885mn b/d in H114. The low cost of fuel has been the main driver of this reverse in trend, as European consumers adjusted their consumption patterns. However, with oil prices forecast to rise over the coming years (see 'Brent: Supply Resilience To Postpone Rebalancing', October 05) the impetus behind fuels growth will run out of steam and the European fuels market will return to its structural decline, as improved efficiencies and environmental regulations limit any room for further growth.
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