10JUL2019 - NEWS - Korean Refiners Cast Positive H2 Outlook on Improved Refining Margins

South Korea’s major refiners are expected to see improved earnings for the second half of the year on recovering refining margins. The benchmark Singapore complex gross refining margin (GRM) for the first week of July was estimated at US$6 per barrel, up $2.8 from June’s average, according to industry data. Margins are the difference between the total value of petroleum products coming out of an oil refinery and the cost of crude and related services, including transportation.

Usually, South Korean refiners generate profit if the refining margin stays above at least $4 per barrel.

This is the first time since third week of September 2018 that the GRM has reached $6 per barrel.