Refining, Petrochemicals Update - Gas Price Surge Boosts GRMs, But Indian GRMs Likely To Lag: 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 GRM is up 2.2 times from $3.2/barrel of oil in August 2021 to $6.9/bbl in October 2021-to-date driven mainly by rise in diesel, jet fuel and fuel oil cracks.
Transportation fuel cracks are at 21-23 month highs. Cracks rise is driven by:
switch to liquid fuels from gas due to much higher gas prices;
fall in refinery utilisation in China; and
U.S. refinery closures due to hurricane Ida.
However, we estimate gross refining margin of Reliance Industries Ltd. to be lower than Singapore GRM in Oct-21-to-date mainly due to petcoke (produced instead of fuel oil) cracks being sharply lower than fuel oil cracks.
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.