High costs combined with weak demand lead to poor refining profit performance

Ask AI · How will declining refining profits affect industry trends?

【High costs combined with weak demand lead to poor refining profit performance】Cailian Press, April 2 — In April, crude oil maintenance costs remain volatile at high levels. Although the possibility of easing geopolitical risk premiums in the Middle East exists, short-term crude oil costs remain high, resulting in elevated refining costs. Currently, gasoline and diesel prices are returning to fundamental-driven logic; gasoline demand is seasonally weak, high oil prices suppress driving, while diesel essential needs are rebounding and stabilizing. Downstream mainly absorbs inventory, and the market lacks demand follow-up when prices rise. Despite expectations of resource supply decline, positive support is limited. Considering inventory accumulation pressure, gasoline and diesel prices fluctuate and decline from high levels. It is expected that in April, the combined revenue of gasoline and diesel products will decrease month-on-month. However, under high-cost pressure, refining margins are expected to marginally decline in April. (Zhuochuang Information)