01 March 2012 05:08 [Source: ICIS news]
SINGAPORE (ICIS)--Asian refiners, with the exception of ?xml:namespace>
"The outperformance of Asian refiners will be led by their higher proportion of middle-distillate output and
The Organization of Petroleum Exporting Countries (OPEC) forecasts a 4.4% year-on-year growth in oil demand for
Meanwhile, the high proportion of middle distillate output in refineries in
"In the medium term, we expect market fundamentals for diesel to remain strong, given robust, non-OECD [Organisation for Economic Co-operation and Development] demand from transport, industrial, and power-generation sectors,” Wong said.
“Fuel-subsidy policies in many Asian countries, including
However, the oil embargo imposed by the
"If key importing nations such as China, Japan, India, and South Korea restrict or reduce crude imports from Iran, the refiners in these countries will need to source more expensive crude from elsewhere and may not be able to fully pass on the higher costs," Wong said
Asian refiners face five major hurdles this year: lower refining margins, regulatory risks, rising crude futures on the back of the tensions in the
Indian Oil Corporation (IOC) faces the most risk from a decline in refining margins and high crude prices, which will likely lower its earnings before interest, taxes, depreciation and amortisation and raise debt, it said.
“The company's already elevated leverage and burden of sharing
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