As of June 4, the
average comprehensive refining profit at Shandong independent refineries stood
at RMB 343/mt, up RMB 38.2/mt WoW. Over the same period, the average crude oil
price inched up by RMB 8/mt, whereas product revenues at Shandong independent
refineries rose by RMB 55/mt WoW.
Downstream
users cautiously scaled up restocking for gasoline and diesel after the Dragon
Boat Festival holiday amid rising crude oil prices, contributing to a brief improvement
in transactions and refined oil prices. As for petroleum coke, buyers purchased
only on a need-to basis, while suppliers sustained stable production, leading
to a notable decrease in prices. Taking into account revenues from by-products,
the average product revenue at Shandong independent refineries grew WoW and
widened their profits further.
In
the coming week, crude oil prices are projected to rebound marginally. Gasoline
and diesel demand may remain flat, providing limited support for prices.
Therefore, refined oil transactions are likely to weaken. Coupled with revenues
from by-products, the average product revenue is anticipated to drop WoW, weighing
on the average comprehensive refining profit at Shandong independent
refineries.