Higher crude prices likely to impact OMCs’ refining, marketing margins
Refining margins of Indian oil marketing companies may get further impacted in coming weeks if crude oil prices consistently remain high following Iran’s threat to avenge the US action against its military commander.
The current crisis has the potential to put the brakes on global demand growth that would impact the crack spreads which are already affected by the collapse of Singapore GRM to 69-quarter low of $1.67/barrel. Petrol and diesel cracks declined to 6-month low of $10.0-13.3/bbl in December and are being viewed as a big concern.
