Asian refiners enjoy better margins after Harvey, but this may be short-lived
Hurricane Harvey has thrown a spanner in the global crude works, forcing producers and buyers to once again alter tactics
Launceston — The window for refiners in Asia to make windfall profits by ramping up output to replace production lost in the US to Hurricane Harvey, appears to be fast closing. On Monday, Saudi Arabia, the world’s biggest crude exporter and a major supplier to many Asian refiners, hiked its official selling price for October more than expected. The kingdom’s benchmark Arab Light grade was boosted by 55 US cents a barrel to a premium of 30c a barrel to the Oman/Dubai average, the highest price since December 2016, and a greater rise than the 20c-50c increase expected in a Reuters survey ahead of the announcement. Asian refiners would have already been bracing for higher prices from Saudi Arabia, but it appears that the hurricane may have prompted a bigger jump as the Saudis seek to achieve the dual aim of higher prices and tightening the crude market. Asian refining margins hit a near two-year high on September 1 after flooding and other disruptions caused by Harvey knocked out about...
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