Asian refiners' diesel profit margins set to climb: analysts

Singapore

ASIAN refiners' profit margins from producing diesel in 2017 may rise for the first time in four years as demand for the fuel improves in the infrastructure, construction, mining and oil and gas exploration sectors.

A return to normal winter conditions after last year's warmer-than-average temperatures along with a recovery in crude oil prices that will stabilise the finances in some producer countries will also spur higher margins, analysts and traders said.

Diesel demand growth will likely drive refiners' profit for producing a barrel of diesel from Dubai crude to an average of US$11.40 a barrel in 2017, higher than the US$10.70 a barrel recorded in 2016, said Suresh Sivanandam, senior manager of refining research, Asia Pacific, at…