Oil at $90/bbl: Refiners still in margin comfort
Riding on cheap Russian oil supplies, Indian refining cos manage to maintain $9-10 per barrel margin
New Delhi: With inter national crude oil prices breaching $90 per barrel mark for the first time in 10 months, Indian refiners, which are the key beneficiaries of cheaper Russian crude, should still be able to clock refining margins of around $9-10 per barrel in current fiscal, CareEdge Ratings said on Monday.
With Brent crude breaching the $90 per barrel mark this month, the gap between international benchmark prices vis-à-vis Urals - the flagship Russian crude - has widened for Indian refiners as Russian crude can be sourced within the G-7 price cap of $60 a barrel, it said.
“The Urals had mostly traded below the G-7 imposed price cap of $60 per barrel, but have breached the cap in recent weeks whereby it is trading at around $69,” it said.
