Shandong Independent Refinery Comprehensive Oil Refining Profit Improved
From March 18 to March 24, the average comprehensive oil refining profit at Shandong independent refineries was RMB 414.4/mt, up RMB 148.2/mt from that from March 11 to March 17. From March 18 to March 24, the average international crude oil price declined, and the feedstock cost at Shandong independent refineries decreased significantly. Meanwhile, the prices of most oil refining products went down. Therein, the decrease in benzene and propylene prices was the largest, while that in gasoline and diesel prices was limited. The yields of benzene and propylene at Shandong independent refineries were limited, so the decrease in feedstock cost was larger than that in oil refining product sales values. Accordingly, the comprehensive oil refining profits at Shandong independent refineries increased.
In the future, the international crude oil prices will mainly keep fluctuating before the OPEC conference is held in early April. In China, the gasoline demand is stable at present, and state-owned refineries’ gasoline procurement from independent refineries and some long-term contracts will support the gasoline market. Accordingly, the future gasoline prices are unlikely to decline notably. Meanwhile, the downstream diesel periodical replenishment has finished, so the diesel prices may trend down in the short term. On the whole, SCI reckons that the future comprehensive oil refining profits at Shandong independent refineries will fluctuate by around RMB 50-100/mt.
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