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Oil & Gas Sector Update: Gross Rent Multiplier, Says ICICI Securities

Oil & Gas Sector Update: Gross Rent Multiplier Up As Freeze Hits Refineries; May Take Weeks To Restart: ICICI Securities

An oil pumping jack, also known as a “nodding donkey”, in an oilfield. (Photographer: Andrey Rudakov/Bloomberg)
An oil pumping jack, also known as a “nodding donkey”, in an oilfield. (Photographer: Andrey Rudakov/Bloomberg)

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ICICI Securities Report

Arctic freeze last week led to shutdown, or impacted: 1) 35% of U.S. oil and 20% of U.S. gas output, 2) entire U.S. LNG exports, 3) 32% of U.S. refining, and 4) 10% of U.S. ethylene capacity.

Oil output is set to recover faster while petrochemical units and refineries may take longer to restart.

This has meant that Reuters’ Singapore GRM ($1.8/barrel of oil) and auto fuel, jet fuel and naphtha cracks ($1.3-4.0/barrel of oil) were up more sharply week over week than oil price.

Click on the attachment to read the full report:

ICICI Securities Oil & Gas Update February 21 2021.pdf

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