Indian refiner BPCL sees further cuts in oil OSPs as fuel margins drop
Corrects format of REF/MARGIN1 link in paragraph 2
By Nidhi Verma
NEW DELHI, July 20 (Reuters) -Bharat Petroleum Corp BPCL.NS, India's third-biggest refiner, expects Middle Eastern producers to cut the official selling prices (OSPs) of their crude in coming months to reflect lower margins on fuel sales, its head of finance said on Saturday.
Lower fuel cracks - the difference between the cost of crude oil and refined product sales - are hitting the profitability of refiners globally. Complex refining margins in Asia have dropped by half to $4.10 per barrel as of July 19 compared with about $8.20 per barrel in February. REF/MARGIN1
"Compared to April-May the OSPs are moderate and these OSPs will be further moderated because cracks are on lower side," Vetsa Ramakrishna Gupta told an analysts call.
"I don't think OSP premiums will be on higher side when cracks are on lower side," he said.
BPCL on Friday said its net profit for the three months ended on June 30 fell 71% from a year earlier to 30.15 billion Indian rupees ($360 million), partly due to lower margins.
Earlier this month, Saudi Aramco 2222.SE cut prices for crude to Asia a second straight month, with its flagship Arab Light crude price for August loadings at its lowest since March. CRU/OSP
Indian refiners meet most of their crude demand from suppliers in the Middle East.
Indian refiners have also raised imports of Russian crude sold at discounts after Western nations imposed a raft of sanctions against Moscow for its invasion of Ukraine.
Russian crude discounts have held at $3.50-$4 per barrel for delivery at Indian ports, Gupta said, adding that Russian oil accounts for about 40% of BPCL's overall crude processing.
BPCL processes about 700,000 barrels of crude per day through its three refineries and sells about 52.5 million metric tons a year of refined fuel through outlets across the country.
($1 = 83.7240 Indian rupees)
Reporting by Nidhi Verma; Editing by Tom Hogue
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
