What crashing refining margins mean for oil markets. Unless you simply burn it, crude oil in its natural state is of no use to consumersit. Refining margins are dependent on input crude oil cost, product slate, and prices of refined products and are indicators of overall profitability. Asias gasoline, naphtha cracks surge on saudi attacks reuters. Singapore, april 7 reuters asian refining margins for 10 ppm gasoil dropped on tuesday, slipping to their lowest level. For 2014, increased domestic crude production in the us continued to play a large role at east coast and gulf. Reuters photo refining margins of indian oil marketing companies may get further impacted in coming weeks if crude oil prices consistently remain high following irans threat to. Mar 03, 2020 singapore, march 2 reuters alreadybattered jet fuel refining margins in asia may come under further pressure in coming months as global airlines suspend more flights and more passengers.
Refiners face rollercoaster ride as fuel margins seesaw. Oil 101 refining business drivers downstream oil and gas. Higher crude prices likely to impact omcs refining. Update 2asian refiner profits for transport fuels plunge on virus. Asias gasoline, naphtha cracks surge on saudi attacks.
Mar 03, 2014 key trends impacting global refining margins. Am0555 a new proxy for coking margins forget the crack spread. Singapore, march 4 reuters asian refining margins for gasoil have plunged to their lowest seasonal levels in the last seven years. Hedge funds chart course through imo 2020 storm reuters. Mar 16, 2020 singapore, march 16 reuters asian refining margins for jet fuel dropped on monday, slumping to their lowest in more than a decade, as airlines around the world continued to scale back flights. Singapore, april 20 reuters asian refining margins for jet fuel tumbled on monday, despite weaker raw material crude prices, which could do little to relieve the pressure on the aviation fuel market created by the coronavirus pandemic. Asia distillatesgasoil cracks dive to lowest seasonal levels in 7 years. Asia distillatesjet fuel refining margins drop, cash. Mar 20, 2020 singapore, march 20 reuters asian jet fuel refining margins posted their biggest weekly decline in over a decade, as aviation fuel remains among the commodities that have been hit the hardest. The future of oil refining profit margins by brad vantassel in recent years, oil refining margins have been extremely volatile.
Benchmark refining margins continued to weaken through the last fortnight. Asia distillatesgasoil refining margins hit lowest on. Nov 25, 2019 what the numbers show is just how quickly refining margins have collapsed in recent weeks. Asia distillatesgasoil refining margins hit lowest on record. Singapore, march 17 reuters oil refiners profits for. The most generic refining indicators compare the cost of acquiring a benchmark crude and processing it into major. The crack spread is the difference between petroleum product prices and. Part of the problem is a surge in the availability of. Asia distillatesjet fuel refining margins post record weekly. A key indicator of refinery margins and ultimately profitability is called the crack spread. Asian refining margins have tumbled more than 50% since midjuly on anticipation of plummeting demand for high sulphur fuel oil hsfo ahead of a shift to cleaner marine fuels next year. Singapore, march 20 reuters asian jet fuel refining margins posted their biggest weekly decline in over a decade, as aviation fuel remains. Update 2supply cuts lift asia oil refining margins to. Lackluster gasoline, naphtha markets pummel asian refining margins.
Refining margins bounce back from february lows bic magazine. Singapore, march 20 reuters asian jet fuel refining margins posted their biggest weekly decline in over a decade, as aviation fuel remains among the commodities that have been hit the hardest. Actual margins realised by bp may vary significantly due to a variety of factors, including specific refinery configurations, crude slate an. What the numbers show is just how quickly refining margins have collapsed in recent weeks. Refiners are having to pay to produce gasoline marketwatch. Crack spread options provide refiners with a great tool to hedge or capture refining margins as they allow the refiner to hedge two independent risks with one trade. Asia distillatesjet fuel refining margins post record. Columnnew shipping rules, china pummel asian refinery profits. Singapore, oct 31 reuters oil product margins have been tossed around on a wild rollercoaster ride in october, as factors like impending iran sanctions, the chinau. The refining marker margin rmm uses regional crack spreads to calculate the margin indicator and does not include estimates of fuel costs and other variable costs. Jan 07, 2020 reuters photo refining margins of indian oil marketing companies may get further impacted in coming weeks if crude oil prices consistently remain high following irans threat to avenge the us. The crack is an industry term that refers to the process of breaking apart crude oil into different components, including gaseous products such as propane, heating fuel, gasoline, light. Oil prices have plunged to oneyear lows, but refiners in certain parts of the u.
London reuters global refining margins have improved significantly in recent weeks which should support strong demand for crude and lend some strength to both spot prices and spreads in the. Lackluster gasoline, naphtha markets pummel asian refining. Crack spreads are an estimator of refining margins. Crack spread options provide refiners with a great tool to hedge or capture refining margins as they allow the refiner to. How refining margins are key indicators of refining. Also known as cracks, refining margins are the difference in value between the raw material, crude oil, and the products churned out by. Singapore reuters asian jet fuel refining margins have turned. Asia distillatesjet fuel refining margins drop further.
The refining margins shown above are compiled using data from third party databases, and as such may be subject to possible errors. The uncertainty is weighing on prices, with the profit margin, or crack. Asian jet fuel refining margins have turned negative for the first time in over a decade, while jet fuel prices in new york fell to the lowest on record as demand for. In the downstream, the refining marker margin rmm rule of thumb reflects the sensitivity of the groups results to changes in refining margins. Singapore, march 24 reuters asian refining margins for jet fuel crawled up on tuesday, a day after plunging to a negative territory for the first time in more than eleven years. Jet fuel woes set to linger as coronavirus sickens global. Asian refiner profits hammered by freefall in fuel oil margins. Singapore, march 27 reuters asian refining margins for jet fuel climbed on friday, while frontmonth spread for the aviation fuel widened its contango amid market concerns that demand would. London reuters benchmark gasoline refining margins in europe turned negative on friday for the first time in nearly five years amid bloated stocks and weaker demand in the atlantic basin. According to new data from the eia, refining margins for motor gasoline. Jet fuel refining margins turn negative as airlines ground fleets.
Oil 101 refining business drivers downstream oil and gas this oil 101 refining module discusses refinery margins, the crack spread, refinery profitability. Asia distillatesgasoil cash premiums, refining margins. Asia refiners run cuts cant keep pace with plunging fuel. Nov 14, 2016 refining margins are dependent on input crude oil cost, product slate, and prices of refined products and are indicators of overall profitability. Singapore, march 16 reuters asian refining margins for jet fuel dropped on monday, slumping to their lowest in more than a decade, as airlines. Am0555 a new proxy for coking margins forget the crack.
Bloomberg, credit suisse estimates refining margins down. However, variations could arise between the rmm and bps realised refining margins due, for example, to bps particular refinery configurations and. The rmm is similar to the approach used by many of our competitors. Daily figure is based on last five 5 days rolling average. The decrease in the wtibrent differential has resulted in a drop in the profitability of refinery margins in the us. Australia, nov 25 reuters profits at asian refineries are being buffeted by a. Unknowns about the future growth rate of the world economy, the price of crude oil, government regulations, as well as the economics of alternative transportation fuels are causing many uncertainties for the industry. Singapore, feb 3 reuters asian refining margins for jet fuel weakened further on monday after posting their biggest monthly decline in more than a decade in january. Crack spreads and indicators released by refining companies all point to margin improvement. Singapore, sept 23 reuters asias oil refining margins for september reached their monthly highest in two years, refinitiv data showed, as attacks on saudi oil facilities came at a time when. Part of the problem is a surge in the availability of gasoil, the fuel used to make diesel and jet kerosene.
Meanwhile, asian jet fuel refining margins turned negative for the first time in over a decade. Jul 12, 2019 singapore, july 12 reuters asia oil refining margins have more than tripled in the past three weeks to hit their highest since september 2017, refinitiv data showed on friday, after refiners. Hedging refining profit margins with crack spread options. European gasoline cracks sink to fiveyear low reuters. Asia distillatesjet fuel refining margins drop as airlines. Asia distillatesjet fuel refining margins drop further reuters. Apr 09, 2020 singapore, april 9 reuters asia pacific oil refineries are finding that processing cuts are not keeping pace with sharp drops in fuel margins, which hit record lows this month, caused by the. The refining marker margin rmm is a generic indicator. Singapore, july 12 reuters asia oil refining margins have more than tripled in the past three weeks to hit their highest since september 2017, refinitiv data showed on friday, after refiners.
Europe oil refining margins to return to reality in 20. The source for financial, economic, and alternative datasets, serving investment professionals. It has been pretty telling that naphtha failed to rally alongside gasoline in april, and that reflects a number of additional competitive pressures, said jbc energys crosby. Brent dubai brentdubai efs product cracks fuel oil crack gasoil crack naphtha crack complex refining margins reporting by florence tan and jessica jaganathan. Register now for full access to this oil 101 content. Singapore, april 9 reuters asia pacific oil refineries are finding that processing cuts are not keeping pace with sharp drops in fuel margins, which hit record lows this month, caused by the. Mar 29, 2020 the crack is an industry term that refers to the process of breaking apart crude oil into different components, including gaseous products such as propane, heating fuel, gasoline, light. Global refining margins help lift crude oil prices reuters.
Also known as cracks, refining margins are the difference in value. Columnnew shipping rules, china pummel asian refinery. Brent dubai brentdubai efs product cracks fuel oil crack gasoil crack naphtha crack complex refining margins reporting by jessica jaganathan. Jul 08, 2019 ever since the international maritime organization said the maximum sulfur content in marine fuel must drop to 0.
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