Shandong Independent Refinery Comprehensive Oil Refining Profit Dropped
From March 11 to March 17, the average comprehensive oil refining profit at Shandong independent refineries was RMB 266.2/mt, down RMB 24.9/mt from that from March 4 to March 10. From March 11 to March 17, the international crude oil prices fluctuated at high levels, and the average feedstock cost at refineries increased by RMB 88/mt. Meanwhile, the price trends of oil refining products were mixed. Therein, the prices of gasoline and propylene rose significantly, while the prices of benzene slumped. On the whole, the sales value of oil refining products grew. However, the increase in feedstock cost was larger than that in oil refining product sales value, and as a consequence, the comprehensive oil refining profits at Shandong independent refineries dropped.
In the future, the international crude oil prices are estimated to continue fluctuating. In China, supported by state-owned refineries’ gasoline procurement from independent refineries and the future scheduled unit maintenance, the gasoline market is predicted to perform well, and gasoline prices are unlikely to decline obviously. Meanwhile, the sand and dust weather in northern China is likely to last for a period, suppressing the diesel demand in the short term. However, after the sand and dust weather is over, the diesel prices will be stable-to-rising. On the whole, SCI reckons that the future comprehensive oil refining profits at Shandong independent refineries will fluctuate by around RMB 30/mt.
