Asian refinery sector faces continued margin squeeze

However, Singapore's status as major hub remains intact, say analysts


THE Asian refining market continues to have an uphill battle ahead, with high crude prices compressing margins while demand continues to languish amid renewed lockdowns and spotty vaccination drives.

Even as some analysts say the worst is over, all are in agreement that Singapore's status as a major refining hub remains intact, thanks to its deep integration with petrochemicals and a supportive ecosystem.

"Overall, the refining sector is facing a tougher challenge than the oil or energy industry as a whole because of the large over-capacity in the region," said Kang Wu, head of global demand and Asia analytics at S&P Global Platts. He added that while Asia is on track to recover this year,...

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