Gas Week

EWN Publishing

Difference between cost of crude oil and the value of its products rises to $US10.74 a barrel

Posted by gasweek on 2 October, 2007

According to Stephen Wisenthal, Caltex Australia, the country’s biggest oil refiner and marketer, will spend $1 billion in the next three years to drive performance at its plants, as industry margins remain at historic highs reported The Australian Financial Review (25/8/2007, p. 12).

Caltex refining margins have surged 20-fold since 2001: But shares in Caltex – half-owned by global integrated oil company Chevron – have surged 20-fold since 2001, as refining margins rose to the highest levels in decades. The margin – the difference between the cost of crude oil and the value of its products – rose to $US10.74 a barrel in the first half, against $US9.76 a year ago. Caltex typically made half its profits from refining and the other half from marketing, but the strong margins had pushed refining to 61 per cent in the first half.

Diesel and petrol sales gain also increase: And delays in construction of new refineries overseas would keep supply tight. Diesel sales rose 9 per cent in the first half from last year, topping a 7 per cent gain for diesel sales across the industry. Petrol sales rose 2 per cent, against a market increase of 1.9 per cent. Caltex made its production targets and hit 85 per cent refinery utilisation despite a 41-day maintenance shutdown at the Kurnell refinery in Sydney.

The Australian Financial Review, 25/8/2007, p. 12

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