Independent refineries in Shandong Province refining straight-run fuel oil got rid of negative refining margins for the first time in 17 months on surges in gasoil prices, a survey found.
Based on Wednesday's prices of spot M100 fuel oil in Shandong market, local refineries' refining margins averaged Yuan 9/mt on paper, versus minus 98/mt two weeks ago and minus Yuan 747/mt a year earlier.
Comprehensive sales revenues of the refineries rose by Yuan 157/mt to Yuan 5,499/mt in the past two weeks; meanwhile, cost of feedstock straight-run fuel oil inched up Yuan 50/mt to Yuan 4,915/mt, a assessment showed.
In the period, in Shandong market, wholesale prices of gasoil roared Yuan 315/mt on supply tightness, while gasoline and hydrogenated naphtha both dropped Yuan 50/mt, LPG down Yuan 100/mt, petcoke down Yuan 125/mt and slurry down Yuan 75/mt.
If calculated by Wednesday's CFR price of M100 fuel oil, which was about US$491.25/mt, Shandong independent refineries would reap minus Yuan 51/mt of refining margin.
The refineries are expected to still enjoy positive refining margins in the coming week as oil product prices would be buoyed on likely rising demand and outlook of domestic LPG market was rosy, market sources predicted.
C1 calculated oil refining margins of independent refineries mainly on the basis of C1's intraday price assessments of spot feedstock and products of these refineries, as well as average output ratio of the products. C1 also took into consideration the average processing cost of the domestic oil refining industry, transportation cost, consumption tax, value-added tax and losses, etc., while excluding the other costs like financial cost and sales tax, etc.
Based on Wednesday's prices of spot M100 fuel oil in Shandong market, local refineries' refining margins averaged Yuan 9/mt on paper, versus minus 98/mt two weeks ago and minus Yuan 747/mt a year earlier.
Comprehensive sales revenues of the refineries rose by Yuan 157/mt to Yuan 5,499/mt in the past two weeks; meanwhile, cost of feedstock straight-run fuel oil inched up Yuan 50/mt to Yuan 4,915/mt, a assessment showed.
In the period, in Shandong market, wholesale prices of gasoil roared Yuan 315/mt on supply tightness, while gasoline and hydrogenated naphtha both dropped Yuan 50/mt, LPG down Yuan 100/mt, petcoke down Yuan 125/mt and slurry down Yuan 75/mt.
If calculated by Wednesday's CFR price of M100 fuel oil, which was about US$491.25/mt, Shandong independent refineries would reap minus Yuan 51/mt of refining margin.
The refineries are expected to still enjoy positive refining margins in the coming week as oil product prices would be buoyed on likely rising demand and outlook of domestic LPG market was rosy, market sources predicted.
C1 calculated oil refining margins of independent refineries mainly on the basis of C1's intraday price assessments of spot feedstock and products of these refineries, as well as average output ratio of the products. C1 also took into consideration the average processing cost of the domestic oil refining industry, transportation cost, consumption tax, value-added tax and losses, etc., while excluding the other costs like financial cost and sales tax, etc.
