Reliance Industries
GRMs to surge post-Rita
If further shut-downs happen and the supply of petroleum products remains under pressure, the gross refining margins (GRMs) shall shoot up. For the week ended September 2, 2005, after the crisis caused by Hurricane Katrina, the Singapore refining margins had moved up by nearly $4.5 to $10.95 over the week previous to that. A similar situation is likely to develop after the looming catastrophe.
Reliance Industries Ltd (RIL), which runs a complex refinery that has the ability to process heavy/sour crude, will be the prime beneficiary of the spurt in the refining margins. RIL further commands a premium over the regional refining margins in Asia.
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