Refining and Marketing Industry - "Industry to witness a challenging phase going ahead"

CARE Research has published Press Release on “Refining and Marketing Industry – Industry to witness a challenging phase going ahead”

Key takeaways include:

• CARE Research expects global oil demand to reach 92.7 mnbpd till CY15 registering a CAGR of 1.1 per cent. The growth would mainly be driven by BRIC nations.

• CARE Research believes the refining capacity utilisation to remain under pressure on the back of incremental capacity. Global refining industry is likely to witness subdued utilisation rates. 

• CARE Research expects Singapore GRM to remain weak owing to wide gap between demand and supply of petroleum products and narrowing differential of light-heavy crude.

• CARE Research expects domestic petroleum production to grow at a CAGR of 2.4 per cent during the period FY14-16 and reach 232mmt in FY16 while domestic demand is expected to be about 160mmt in FY16. Thus, with excess supply of petroleum products, India would continue to be net exporter.

• Partial deregulation of diesel was announced in January 2013. However, high crude oil prices and depreciating rupee are expected to soar under-recoveries impacting the liquidity of OMCs. CARE Research estimates under-recoveries to be approximately Rs1,490bn for FY14.

For any analytical queries kindly contact:

chaitanya.raut@careratings.com ; gunjan.poddar@careratings.com ; sakshi.dakhera@careratings.com