Korean refiners remain gloomy despite pickup in gasoline refining margins
Kyung-Min Kang
Aug 28, 2020 (Gmt+09:00)
While Asia’s benchmark refining margin has risen to its highest level in five months, South Korea’s major oil refiners are still concerned about their business outlook, citing subdued demand for their key products -- diesel and kerosene.
South Korea’s largest oil refiner SK Innovation Co. and other local players fear their profitability could worsen this year, weighed by an economic slowdown in emerging markets amid the resurgence of the COVID-19 pandemic.
According to the oil industry, the benchmark Singapore complex gross refining margin stood at $0.6 per barrel in the third week of August, marking the highest margin since the second week of March, when the coronavirus began its rapid spread.
Industry officials largely attributed the gains to higher demand from some countries for gasoline.