Oil & Gas Sector Update - Petrol Cracks Boost GRM To 14-Month High, But Diesel Weak: 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, though still modest, is at a 14-month high of $2.4/barrel of oil in April 2021-to-date driven mainly by petrol cracks, which at $11/bbl are at a 17-month high.
U.S. snowstorms that cut utilisation and led to steep inventory fall is the main driver of petrol cracks.
Diesel cracks, however, at $4.6/bbl are well below pre-Covid-19 of $11.0-14.3/bbl in Q4-Q3 FY20.
We estimate Q1 FY22-to-date core GRMs of Bharat Petroleum Corp., Indian Oil Corp., Reliance Industries Ltd., at $1.8-4.1/bbl which, though modest, are among the strongest since Covid struck.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.