As of May 28, the
average comprehensive refining profit at Shandong independent refineries stood
at RMB 304.8/mt, up RMB 71/mt WoW. Over the same period, the average crude oil
price dipped by RMB 36/mt, whereas product revenues at Shandong independent
refineries rose by RMB 46/mt WoW.
Both
gasoline and diesel prices grew in the week, driven by expanded maintenance in several
refineries and gasoline restocking demand ahead of the Dragon Boat Festival
holiday. As for petroleum coke, however, downstream users prioritized
destocking over fresh purchases, which exacerbated sales pressure on suppliers.
Hence, petroleum coke prices notably retreated this week. Taking into account
revenues from by-products, the average product revenue at Shandong independent
refineries inched up WoW and widened their profits.
In the coming week,
crude oil prices are projected to go down, which may bring downward pressure on
gasoline and diesel prices. That said, restocking demand before and after the Dragon
Boat Festival holiday is likely to support fuel prices to some extent.
Therefore, SCI reckons that refined oil transactions would improve marginally,
and the average prices of the two fuels are estimated to see an uptick. Coupled
with revenues from by-products, the average product revenue is anticipated to
edge higher WoW, consecutively lifting the average comprehensive refining
profit at Shandong independent refineries.