Caltex Australia, which reportedly accounts for 30% of the Australian refining capacity, has blamed the decrease in refining margins on the decline in underlying Singapore refining margins, a strengthening of the Australian dollar and increased crude costs.
The Australian refiner noted that regional demand for petroleum products, especially diesel, remains robust, but recession fears in the US may flatten global demand and ease refining margins in the second half of 2008.
The news source noted that unanticipated shutdowns at its Lytton refinery diesel hydrotreater and Kurnell refinery catalytic cracker are expected to negatively affect its second quarter earnings, by around A$35 million.
