Motilal Oswal - MOSL: OIL GAS: Glut in refining suppresses GRMs

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Motilal Oswal

Swarnendu Bhushan

EUR 120.00 For Business Accounts Only

MOSL: OIL & GAS: Glut in refining suppresses GRMs

Oil & Gas: Glut in refining suppresses GRMs

Singapore (SG) GRM shot up during 2QFY20 due to rise in petrol and FO cracks (), averaging USD6.3/bbl for the quarter. Continued demand weakness combined with normalization of FO supply resulted in SG GRM declining to USD4.1/bbl and USD1.7/bbl in Oct'19 and Nov'19 YTD, respectively, from USD7.6/bbl in Sep'19.
We estimate that a total of 2.6mnbopd of refining capacity came online in 2019 against incremental demand of 0.8mnbopd (revised down from 1.1mnbopd at the start of the year).
In absence of global recovery, we anticipate that GRMs would remain suppressed for few more months in lieu of incremental refining capacity addition.

25/11/2019 4 EN

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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Analysts

Swarnendu Bhushan

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MOSL: OIL & GAS: Glut in refining suppresses GRMs

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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