Pakistan Oil & Gas_Cracks depict a mixed trend, (AKD Daily, Jul 29, 2021)
AKD Daily
Pakistan Oil & Gas: Cracks depict a mixed trend
- POL product cracks for 4QFY21 remained mixed - where for HSD, cracks declined to USD3.36/bbl despite underlying crude benchmarks inching higher (Arab Light during the period average at USD76/bbl up 11%QoQ) on the back of increasing demand amid tight supply.
- RON92 cracks stood at USD4.39/bbl, increasing by 300.5/54.5% YoY/QoQ as individual activity across the major economies increase post improving vaccination rates. To note, average RON92 crack for 4QFY21 was well above 9MFY21 average of USD2.0/bbl.
- HSFO cracks continue to operate in the red, standing at USD-12.0/bbl for 4QFY21 (vs. 9MFY21 avg. of USD-5.8/bbl) as again increased refinery run rates due to high gasoline demand resulted in oversupply while demand of the product continues to dwindle down.
- Moving forward, even though supply remains tight, a decrease in demand as COVID-19 cases continue to increase cannot be ruled out in medium term however in immediate term, prices are expected to maintain their high ground. Impact on cracks is expected to be similar where a decline in demand can lead to decrease in gasoline cracks particularly however if refiners decrease their run rates, HSD cracks can witness an uplift due to decreased supply.
AKD Research
Co. and its subsidiaries are principally engaged in the exploration, drilling, production and sale of crude oil and gas and other products.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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