UBS:: Asia Oil Explorer- PX-naphtha spread continues to surge

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


UBS Investment Research
Asia Oil Explorer
PX-naphtha spread continues to surge
􀂄 Refining margins decline slightly WoW
The Reuters Singapore complex refining margin index averaged US$6.6/bbl last
week, down from US$6.8/bbl the previous week. Fuel oil and diesel spreads versus
Dubai were up US$1.4/bbl and US$0.4/bbl, respectively WoW. However, gasoline
spread fell US$0.4/bbl WoW. PX spread to naphtha rose 3.1% WoW to close at
US$823/t. The spread has risen 185% over the last six months.

􀂄 Political unrest in Egypt, Iran keeps oil supported
WTI crude oil prices rose 0.7%, ending last week at US$86.2/bbl, while Brent
prices rose 1.8%, ending last week at US$102.2/bbl. WTI and Brent prices were
supported by the ongoing turmoil in Middle East and North Africa. According to
the US Department of Energy (DOE) for the week ended 11 February, crude
inventories rose 0.9mbbls to 345.9mbbls vs. Reuters’ consensus of a 2.2mbbls
build. Gasoline inventories rose 0.2mbbls to 241.1mbbls, its 20-year high, while
distillate stocks fell 3.1mbbls.
􀂄 Refining stocks have outperformed in the past month
For the month ended 18 February and based on simple average performance,
refining and marketing stocks in Asia under UBS coverage rose 2.1%, while, on an
average, E&P and integrated stocks fell 0.5% and 0.6%, respectively.
􀂄 Top picks
Our Most Preferred stocks in Asia are COSL, SinoTech, Essar Oil and Thai Oil.