Limited refining capacity to keep margins high: Reliance Industries

RIL did point to these recessionary fears at its investor call, saying it remained a challenge for oil companies

The Mukesh Ambani-led Reliance Industries (RIL) expects refining capacity globally to be limited through the calendar year (2022), aiding refining margins. 

In an earnings call after its results on Friday, the RIL management said oil demand would average 99.2 million barrels per day this year. This would be higher by 1.7 million barrels per day versus last year, helping keep refining margins high, even as the overall refining capacity globally remains repressed. 

RIL had benefited from high refining margins in April-June, touching $22-25 per barrel in the first quarter - more than double the average of around $10 a barrel