Research Report

The escalation of the West Asian conflict and disruptions to key oil supply routes led to a sharp rise in crude prices, resulting in sizeable marketing losses and LPG under-recoveries for the OMCs. If the situation persists and retail prices are not increased, profitability of OMCs could be significantly impacted.

• Crude oil prices increased sharply amid escalating geopolitical tensions and concerns over supply disruptions in West Asia.
  
• Singapore gross refining margins (GRM) have stayed above $10/bbl since the crisis began owing to refinery outages, inventory drawdowns and damage to Russian refining capacity.