Major China refiners yield better margins on higher product prices

12 March 2014 10:47  [Source: ICIS news]

SINGAPORE (ICIS)--China’s major refiners posted better margins on Wednesday compared with two weeks ago on the back of higher prices of oil products, ICIS data showed.

Based on the integrated ex-refinery prices of oil products, the margins for refining Daqing crude averaged yuan (CNY) 128/tonne ($2.86/bbl) on 12 March, versus minus CNY5/tonne (or minus $0.11/bbl) on 26 February.

For refining Oman crude, a representative of foreign crude, gross margins averaged CNY327/tonne (or $7.39/bbl), up by CNY71/tonne ($1.60/bbl) from two weeks ago.

Income of refined products from Daqing crude went up by 2.1% over the period mainly because of a CNY205/tonne and a CNY200/tonne increase in gasoline and gasoil ex-refinery prices, respectively, according to data from C1 Energy, an ICIS service in China.

It was also aided by a CNY105/tonne or 8.4% increase in petroleum coke prices and a 2.3% rise in liquefied petroleum gas (LPG) prices.

Meanwhile, income of refined products from Oman crude rose 1.4% from two weeks ago, propped up by 2.3-2.7% gains in gasoline and gasoil prices, and a CNY35/tonne or 3.5% increase in petroleum coke prices, according to the data.

But this was weighed down by declines in jet fuel and LPG prices – by 1.2% and 2.9%, respectively.

The cost of Daqing crude went down by CNY8/tonne to CNY5,443/tonne, while the cost of Oman crude increased by 10 US cents/bbl to $108.20/bbl, the data also showed.

By: Amy Sun
+65 6780 4359

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