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Investor Presentaiton

Price impact - history or elasticity 180 160 140 120 100 80 60 40 20 0 Jan 2005 May 2005 Sep 2005 Jan 2006 iea May 2006 Sep 2006 Jan 2007 May 2007 Sep 2007 Jan 2008 May 2008 Sep 2008 Jan 2009 Gasoil prices ands cracks in Europe чим May 2009 Sep 2009 Jan 2010 May 2010 Sep 2010 gasoil prices ($/bl) Sep 2013 Jan 2014 May 2014 Sep 2014 Jan 2015 May 2015 Sep 2015 Jan 2016 May 2016 Sep 2016 Jan 2017 May 2017 Sep 2017 Jan 2018 gasoil cracks ($/bl) May 2018 Sep 2018 • With low demand response to prices, diesel prices must significantly increase to cut demand. • In Oil 2018 we assumed bunkers would need 200-250 kb/d of diesel from inland demand to achieve the 1.2 mb/d -1.3 mb/d needed for the . switch. Equivalent to 20% to 30% increase in prices. To switch all remaining HSFO to diesel, prices would have to ~double to balance 1 mb/d additional marine gasoil use. Diesel prices more than doubled in 2008. Lower spike anticipated in Oil 2018 © IEA 2016
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