InvestorQ : How do you see the Singapore GRM impacting Indian refining companies like RIL, BPCL and IOCL?
Sam Eswaran made post

How do you see the Singapore GRM impacting Indian refining companies like RIL, BPCL and IOCL?

Answer
image
Moii Chavate answered.
2 months ago
Follow

There has been a sharp one-way movement in the benchmark Singapore gross refining margin or the GRM. This has been one of the positive outcomes of the spike in Brent crude to above $85/bbl. In fact, the benchmark Singapore GRM has now climbed to a 2-year high level of $7.2/bbl. The average GRM of $3.2/bbl, which is nearly 4-fold higher yoy.

GRMs have also been supported by a sharp bounce in refining demand. These improved GRMs are expected to benefit the oil refiners in India. While Reliance Industries will be the biggest beneficiary of this up move in GRMs, other major refiners like Indian Oil Corporation and BPCL are also likely to benefit.

4 Views