China’s refining margin squeezed by high crude

15 March 2012 05:28  [Source: ICIS news]

SINGAPORE (ICIS)--China’s refineries margins have started eroding for the past two weeks on strong crude prices, according to calculations by C1 Energy, an ICIS service in China.

Based on integrated ex-refinery prices of oil products, the margin for refining Daqing crude was at minus yuan (CNY) 57/tonne ($9/tonne), or $1.21/bbl, on 13 March against CNY50/tonne, or $1.09/bbl two weeks ago.

The gross margin for refining Oman crude, a representative of imported crude, was at CNY170/tonne, or$3.61/bbl, on 13 March, down by CNY256/tonne, or $5.49/bbl, from two weeks earlier.

In the two-weeks ending 13 March, overall ex-refinery prices of oil products increased 2-2.5%, lower than the 4.4% gain on Daqing and 5.6% rise on Oman crude cost, according to C1 Energy.

Refining margin is the difference between a refinery’s wholesale income of oil products and its cost of crude.

($1 = CNY6.33)

By: Amy Sun
+65 6780 4359

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