Global refinery margins trended higher last week, as refiners slow runs to complete planned maintenance before the onset of International Maritime Organization 2020 on January 1, an analysis from S&P Global Platts showed Monday. However, Asian refiners were excluded from the uptick in refinery economics, as margins were impacted by the supply disruption from the September 14 attack on Saudi Arabia’s Abqaiq crude processing facility.
The facility processes Arab Light and Arab Extra Light, which are favored by Asian refiners like India’s Reliance Industries. Reliance said earlier that it was receiving its supply of Saudi crude, but was getting heavier grades, which in turn impacted refinery margins. Cracking margins for Arab Extra Light in China fell to $2.72/b for the week-ended September 27, from $3.57/b the week earlier, according to S&P Global Platts Analytics, while Southeast Asian margins fell to $3.13/b from $3.96/b in the week-ended September 20.
Saudi Aramco said Monday it restored its oil production to 9.9 million b/d and is replenishing its stocks. Margins recovered amid this news, with cracking margins of Arab Extra Light in China and Southeast Asia up Monday at $2.78/b and $3.26/b, respectively. But the kingdom was seen looking to import refined products and feedstocks, market sources said, in order to supply clients, which in turn is supporting other regions.