Reuters also reported that profit margins for complex refiners in Singapore — the bellwether for Asian refiners — had tipped over US$20 a barrel on Wednesday while crack spreads for gasoline, diesel and jet fuel had set fresh record highs of US$22.28, US$47.53 and US$37.38 per barrel respectively on Thursday, as transportation returns to form amid easing of pandemic containment measures across the globe.
Earlier this month on April 4, rating agency Moody’s Investors Service had also said Asian refining margins will remain buoyant in 2022 as easing movement restrictions boost demand for transportation fuels, while uptake for Asian fuels from Europe has increased due to international sanctions on Russia.
It noted that at the same time, supply has fallen due to significant refinery closures last year, coupled with decreased fuel exports from China.
Strong demand for transportation fuels amid a supply shortfall would drive refining margins even as a recent surge in crude prices bolsters feedstock costs, Moody’s added.
Hi, Valueguru. I am a newbie here. I would like to ask whether is O&G share price affected by Brent crude oil price or gasoline crack spread price? This is because few weeks back there are news that Brent crude oil drop. People panic sell because it is thought that it will adversely affect O&G shares.
Then not too long back, Warren Buffet bought O&G shares. I follow him by buying a bit of Hibiscus share as the Brent crude oil sentiment is still there.
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