The positive expectations characteristic of the early part of 2011 gave way to uncertainty towards the end of the year. This uncertainty, together with high prices, resulted in turbulence on the oil market and swings in crude and feedstock prices. General economic uncertainty in the latter part of the year also impacted product demand and consumption.
The most important factor impacting Neste Oil Group’s financial result is the differential or margin between the price paid for refined products and the price of the crude and other feedstocks used to produce them. The changes affecting these issues and their impact on Neste Oil’s financial result are described in the Financial Statements section of the Annual Report under Market risks.
- Economic uncertainty is set to continue, with growth concentrated in developing markets
- Energy prices, and oil prices in particular, are expected to remain at high levels
- The structure of demand in Europe will shift to lighter products
- The proportion of renewable fuels will grow as legislation develops; during 2012, demand is likely to grow steadily
- Emission limits will become stricter and greater attention will be given to energy efficiency.