GRM trends downwards reflecting YoY decline of 56 percent

The Gross Refining Margin (GRM) averaged $2.89/bbl in January 2020, reflecting a year-on-year decline of $3.66/bbl or 56 percent. GRM trended downwards, as hefty losses at the bottom of the barrel outstripped gains registered in other sections of the barrel.

This was due to Furnace Oil (FO) markets which posted a massive decline of 301 percent on year-on-year basis amid a growing bearish sentiment around consumption of this product ahead of IMO 2020 implementation, Arsalan Ahmed, at JS Global Capital said. Product wise, the highest decline after FO was seen in LDO, which posted a decline from $9.42 to negative $0.10.