Margins of refiners, petrochemical companies seen improving

Affun Hwang Research has downgraded the counter from a

PETALING JAYA: The margins of refiners and petrochemical companies are expected to improve as the current rise in crude oil prices is deemed to be temporary, according to a report by JP Morgan Chase & Co.

The report noted that as oil prices weaken, refining margins will improve even though US refiners hit by Hurricane Harvey have been coming back online. This, in turn, has affected product prices and crack spreads, which have retreated.