Oil refining margins have been weak in recent quarters. Still, some comfort can be derived from the sequential improvement in the benchmark Singapore gross refining margin (GRM). For Reliance Industries Ltd (RIL), many analysts have clipped their refining margin estimates over the course of FY19. These require ships to use oil with lower sulphur content, which in turn is expected to boost diesel demand, boosting refining margins. However, should these gains not fructify and the current muted GRMs persist, investors can expect further cuts in RIL’s refining margin estimates going ahead.

Source: Mint June 12, 2019 17:15 UTC