Refners’ outlooks diverge on Covid-19 recovery

摘要

South Korean refners, fresh from recording record frst-quarter losses, are adopting dramatically diferent strategies as they look to emerge from what leading frm SK Innovation calls “the worst management environment” in the sector’s history. SK, the country’s biggest crude processor, has run its 840,000 b/d Ulsan refnery at a reduced rate of 85pc since March and plans to cut this to 60-70pc in June-July, as it sees fuel demand and proft margins remaining weak because of Covid-19. Crack spreads have fallen below zero on gasoline and jet fuel, and all of the frm’s crude storage tanks are now full, meaning it has been forced to pay tankers carry- ing cargoes as much as 100mn won/day ($81,000/d) to wait of the coast. SK is try- ing to wait out the crisis, bringing forward some maintenance to reduce crude runs while minimising jet fuel output and blending the product with low-sulphur fuel oil.