The gross refining margins (GRM) averaged $11.45/bbl during the month of August-2019, marking increase of $2.01/bbl or 21 percent on year-on-year basis. GRMs during the month trended upward, reaching the highest level in the year 2019, supported by a robust performance at the top and bottom of the barrel, an analyst at JS Global Capital said.
This was primarily backed by supply disruptions during the month as refinery issues and unplanned outages restricted supplies in China, India, Indonesia, Vietnam and the Philippines amid firm export opportunities to the Middle East, he added. Product wise highest increase was seen in fuel oil, which posted 72 percent increase from negative $8.82 to negative $2.49. In the middle of the barrel, the jet/kerosene crack spread increased by 10 percent.
On a sequential basis, average GRMs improved by 23 percent during Aug-2019 on account of robust performance at the middle of the barrel supported by scheduled and unscheduled refinery maintenance.
Among the categories, Fuel Oil, MS, Kerosene, JP-1 & LDO increased by 67 percent, 12 percent, 45 percent, 44 percent and 53 percent on month-on-month basis respectively while, HSD crack spreads remain unchanged.
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