Oil And Gas Sector Update - GRM, Marketing Margins Weak But Hopeful Of Recovery: ICICI Securities
A flame blazes from a gas flare stack at an Indian Oil Corp. refinery in Odisha. (Photographer: Dhiraj Singh/Bloomberg)

Oil And Gas Sector Update - GRM, Marketing Margins Weak But Hopeful Of Recovery: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Reuters’ Singapore gross refining margin in May 2021-to-date is down 10% month-on-month from 14-month high of $2.7/barrel of oil in April 2021, hit by month-on-month fall in petrol, liquefied petroleum gas and fuel oil cracks.

GRM on May 18, 2021 is sharply lower at just $1.16/barrel of oil.

We estimate Q1 FY22-to date GRMs of Bharat Petroleum Corp., Indian Oil Corp. and Reliance Industries Ltd. to be weak at $0.4-3.5/barrel of oil.

Recovery in diesel cracks, which were pre-Covid-19 at $11.0-14.3/barrel of oil in Q4-Q3 FY20, is key to GRM rising to our FY22E estimate of $3.4-7.0/barrel of oil.

Click on the attachment to read the full report:

ICICI Securities Oil downstream Update.pdf

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