China’s refining margins of Daqing crude turn positive

12 July 2013 10:17  [Source: ICIS news]

SINGAPORE (ICIS)--The margins of major Chinese refiners processing Daqing crude inched up to the positive territory in the two weeks ending 12 July as crude settlements declined, ICIS data showed on Friday.

Based on the integrated ex-refinery prices of oil products, the margins for refining Daqing crude averaged yuan (CNY) 1/tonne (or $0.02/bbl) on 10 July, versus minus CNY8/tonne (or minus $0.18/bbl) two weeks ago.

The July settlement price of Daqing crude dropped by CNY42/tonne or 0.8% from June to CNY5,266/tonne, the lowest level in the past 11 months. However, the refining margin was partly offset by a CNY33/tonne or 0.6% drop in oil product sales revenue.

Meanwhile, refining margins for major refiners with Oman crude, a representative of foreign crude, as the feedstock dropped by CNY21/tonne (or $0.44/bbl) to CNY227/tonne (or $5.08/bbl) because of a decline of CNY48/tonne or 0.8% in sales revenues.

The average price of Omen crude was largely stable in the period.

Refining margin is the difference between crude prices and sales revenue.

($1 = CNY6.14)

By: Amy Sun
+65 6780 4359

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