Oil & Gas Sector Update - Petrol Cracks Boost GRM To 14-Month High, But Diesel Weak: ICICI Securities 
Two men sit on the roof of a truck as flame blazes from a gas flare stack at a refinery in the Mahul area of Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Oil & Gas Sector Update - Petrol Cracks Boost GRM To 14-Month High, But Diesel Weak: ICICI Securities 

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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.

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ICICI Securities Oil&Gas Sector Update.pdf

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