How is Singapore GRM calculated?
GRM is the difference between crude oil price and total value of petroleum products produced by the refinery. For example, if a refinery receives $80 from the sale of the products refined from a barrel of crude oil that costs $70/bbl, then the Refinery Gross Margin is $10/bbl.
What is Singapore benchmark GRM?
The benchmark Singapore gross refining margin (GRM) has recovered strongly. GRM is the amount that refiners earn from turning each barrel of crude oil into fuel products. So far in FY22, the Singapore GRM stands at $3.2 per barrel, up 538 percent year-on-year, the broker said.
What is refinery crack spread?
The crack spread — the theoretical refining margin — is executed by selling the refined products futures (i.e., gasoline or diesel) and buying crude oil futures, thereby locking in the differential between the refined products and crude oil.
What is refining margin?
Refining margins are the difference in value between the products produced by a refinery and the value of the crude oil used to produce them. Refining margins will thus vary from refinery to refinery and depend on the price and characteristics of the crude used.
What is the profit margin on a barrel of oil?
As of January 2020, the average net profit margin for the oil and gas drilling industry was 6.8%.
What is the 2 1 1 crack spread?
The other standard spreads are the 3-2-1 (3 bbl crude vs. 2 gasoline and 1 heating oil), and 2-1-1 (2 bbl crude, 1 gasoline, 1 heating oil).
What is a good crack spread?
Essentially, refiners want a strong positive spread between the price of a barrel of oil and the price of its refined products; meaning a barrel of oil is significantly cheaper than the refined products. This is the most common crack spread play, and it is called the 1:1 crack spread.
Why are refining margins low?
Refiners have been forced to blend jet fuel with diesel, increasing its supply, which has pushed the margin down. The lower availability of these crudes has reduced their differentials to Brent, weakening the margins of the sophisticated refiners (mostly in Asia) that use them as feedstock.
What is the gross refining margin in Singapore?
A steady rise in refining margins, a key indicator of oil refiners’ profitability, is raising expectations for an earnings improvement of domestic oil refiners in the second half of this year. The benchmark Singapore complex gross refining margin (GRM) stood at US$10.1 per barrel in the third week of September.
What’s the price of a barrel of oil in Singapore?
In the last three weeks, the benchmark Singapore refining margin more than tripled to US$9.37 a barrel at Thursday’s close of Asian markets, from just US$2.74 per barrel on June 21.
Why are refining margins going down in Europe?
European refiners also reported they were cutting rates on lack of demand and falling margins. NWE cracking margins for Arab Light averaged minus 32 cents/b for the week ended March 20, compared with the 99 cents/b for the week ended March 13, Platts Analytics data shows..
What is the Singapore GRM for crude oil?
The report added that the Singapore GRM is at a 33-quarter low. This represents a 28% decline compared to September quarter. For a refiner, GRM is realization from turning a barrel of crude oil into finished products.