29.08.2008 - Increase in capacity to squeeze refining profits of Asian firms
From Livemint: New facilities are expected to boost capacity by 1.3 mbpd this year, pushing down margins of refiners. Asian oil refining earnings may fall in the next few years as new processing plants start operations in India and China, Goldman Sachs said. The benchmark complex refining profit in Singapore, Asia’s biggest oil trading centre, may fall to $6 (Rs262 today) a barrel in 2009 and $5.50 in 2010, from $9 this year, Goldman’s India-based analysts Nilesh Banerjee, Karthik Bhat and Durga Dath said in a report on Thursday, without giving earlier estimates. Supplies of petrol, diesel and jet fuel would increase, pushing refining margins lower, with about 2.5 million barrels per day (mbpd) of new capacity being added globally between 2008 and 2009, the analysts said..... Full Article: Source