Asian refineries are suffering from sluggish processing margins due to high oil prices and oversupply of refined products. A smaller cut of the OSP may prompt some refiners to cut procurements or even lower operations this month. "May is a crucial month for Asian refiners as some already struggle to reach break-even in their balance sheet. Saudi Arabia also cut the June OSPs of other grades to Asia, with bigger trims than Arab Light. A number of Asian refiners have scheduled maintenance shutdowns in the second and third quarter, curbing feedstock demand and putting pressure on oil prices.
Mar 21 2023