Major refineries entraped right into refining losses on significant gains in unrefined prices
Major refineries in China saw refining margins fall under negative areas due to surges in unrefined expenses.
If relied on the basis of ex-refinery prices of their products, gross margin from refining domestic Daqing crude was about minus Yuan 493/mt (comparable to minus US$ 10.13/ bbl) early Might, versus minus Yuan 289/mt from 2 weeks back. Meanwhile, gross refining margin for the refineries taking in Oman crude, a representative of imported crude, plunged right into unfavorable region for the very first time in two years, touching minus Yuan 32/mt (equivalent to minus US$ 0.65/ bbl), down 221/mt, C1's evaluation revealed.
May settlement rates of Daqing crude swelled nearly 7% compared to the previous month, better near to historic-high level. hedp na2 was essentially in parity with Oman crude.
Integrated wholesale rates of products inched up simply 1-3% in the duration.
Nevertheless, the refineries are expected to keep performing at high rates as Sinopec will remain to encourage fuel and also gasoil manufacturing in May, although their refining margins will improve very little under the policy, market sources denoted.
Sinopec's refining sector posted loss of Yuan 570-mil in the initial quarter of this year, according to the oil refiner's quarterly report. The loss may strengthen as the benchmark crude rate is coming close to US$ 130/bbl, and the federal government may need to support residential refineries to guarantee oil item supply, market resources believed.
According to the Oil Market Monitoring Method promoted in Might 2009, residential oil product prices would certainly not go even more up, or be raised by a tiny margin, when crude prices climb above US$ 130/bbl, and fiscal as well as tax devices would certainly be made use of to ensure supplies.
Based on integrated wholesale prices of oil products, the margins for refining Daqing crude was Yuan 81/mt (comparable to minus US$ 1.68/ bbl), substantially down Yuan 335/mt from two weeks earlier. On the other hand, those for Oman crude declined Yuan 127/mt to Yuan 616/mt (equivalent to US$ 12.66/ bbl).
To much better show refining margins of significant refineries, C1 uses ex-refinery price of 93-Ron fuel instead of 90-Ron fuel as one of parameters from Might 2011.
Starting from Apr 21, C1 calculated the refining margins of Oman crude on the basis of integrated oil items wholesale prices according to mark-to-market principle, namely utilizing C1's analysis for the previous day's CFR price of Oman crude as feedstock expense rather than mean cost of the quality in the previous month, which can better reflect adjustments in worldwide crude costs.
If relied on the basis of ex-refinery prices of their products, gross margin from refining domestic Daqing crude was about minus Yuan 493/mt (comparable to minus US$ 10.13/ bbl) early Might, versus minus Yuan 289/mt from 2 weeks back. Meanwhile, gross refining margin for the refineries taking in Oman crude, a representative of imported crude, plunged right into unfavorable region for the very first time in two years, touching minus Yuan 32/mt (equivalent to minus US$ 0.65/ bbl), down 221/mt, C1's evaluation revealed.
May settlement rates of Daqing crude swelled nearly 7% compared to the previous month, better near to historic-high level. hedp na2 was essentially in parity with Oman crude.
Integrated wholesale rates of products inched up simply 1-3% in the duration.
Nevertheless, the refineries are expected to keep performing at high rates as Sinopec will remain to encourage fuel and also gasoil manufacturing in May, although their refining margins will improve very little under the policy, market sources denoted.
Sinopec's refining sector posted loss of Yuan 570-mil in the initial quarter of this year, according to the oil refiner's quarterly report. The loss may strengthen as the benchmark crude rate is coming close to US$ 130/bbl, and the federal government may need to support residential refineries to guarantee oil item supply, market resources believed.
According to the Oil Market Monitoring Method promoted in Might 2009, residential oil product prices would certainly not go even more up, or be raised by a tiny margin, when crude prices climb above US$ 130/bbl, and fiscal as well as tax devices would certainly be made use of to ensure supplies.
Based on integrated wholesale prices of oil products, the margins for refining Daqing crude was Yuan 81/mt (comparable to minus US$ 1.68/ bbl), substantially down Yuan 335/mt from two weeks earlier. On the other hand, those for Oman crude declined Yuan 127/mt to Yuan 616/mt (equivalent to US$ 12.66/ bbl).
To much better show refining margins of significant refineries, C1 uses ex-refinery price of 93-Ron fuel instead of 90-Ron fuel as one of parameters from Might 2011.
Starting from Apr 21, C1 calculated the refining margins of Oman crude on the basis of integrated oil items wholesale prices according to mark-to-market principle, namely utilizing C1's analysis for the previous day's CFR price of Oman crude as feedstock expense rather than mean cost of the quality in the previous month, which can better reflect adjustments in worldwide crude costs.
Public Last updated: 2021-03-24 03:22:24 PM