Refining surplus will continue: Shell Malaysia

Shell Refining Company (Federation of Malaya) Bhd Chairman John Chadwick believes that the surplus in the refining capacity in the South East Asia region is expected to continue despite current market forces.

Whilst fluctuations on crude oil and product prices during the second half of the year would have an impact on gross margin through the inventory holding effect, Chadwick is of the opinion that the industry will continue to aggressively purse cost and margin improvement initiatives.

He believes that with these strategies in play, the industry will be able to maintain a strong underlying performance overall.