the air pollution campaign will have far reaching implications, say energy consultants Wood Mackenzie. Greener regulations for gasoline and diesel that come into effect from next year in Europe will cut output, while boosting regional oil products trade and use of lighter, crudes, say analysts. The Auto Oil rules aim to cut pollution by improving vehicle technology and cleaning up fuels.

The Petroleum Finance company has identified 28 companies that are "in particularly fragile position', that are liable to shut because of poor economics in meeting new regu-lations. Refineries will have to limit sulphur in gasoline to 150 parts per million ( ppm ) by next year and in diesel to 350 ppm.