Oil & Gas and Petrochemicals - Refining & Petchem margins under pressure - Emkay Global

- Benchmark Singapore refining margins decline MoM from US$7.6/bbl in Oct. to US$5.42/bbl in Nov 2011 led by slump in gasoline cracks. Average US$3.95/bbl in 2H Nov 2011

- Cracker margins continue to remain under pressure due to fall in propylene and butadiene prices. Butadiene prices correct 60% from August 2011

- In Nov. 2011 IEA has maintained world oil demand outlook after cutting estimate for two months. It forecasts demand for 2012 to reach at 90.5mbd an increase of 1.3mbpd

- Poylester chain has been mixed, with increase in PFY and PTA-PX margins, while PSF and MEG-Ethylene margins decline

Source : Equity Bulls

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