Major issues and conclusions
Refining margins for naphtha, gasoline and bunker C oil are widening sharply after the attack on a Saudi Aramco ([[ARMCO]]) oil processing facility and oilfield. To maintain crude oil supplies, Saudi Arabia suspended operations of its refining facilities with a capacity of 1 million bpd; petrochemical supply will tighten further as a result. Chemical products’ prices rebounded on the supply shortage of feedstock at chemical facilities in Saudi Arabia, but raw material price increases were marked, meaning narrower spreads. We will monitor how quickly the Saudi Arabian facilities normalize.