Caltex Australia (ASX:CTX) refiner margins hit by oil price and demand

Company News

by Rachael Jones

Caltex Australia (ASX:CTX) is monitoring the impacts from market responses to COVID-19 on regional refining margins, crude and product demand both globally and in Caltex’s markets (including Australian hydrocarbon demand).

Australian jet fuel demand has been impacted by flight cancellations domestically and internationally.

As advised at the 2019 full year results on 25 February 2020, they have been seeing demand reduction of jet fuel of 5-10 per cent for the Australian industry.

Recent reports by airlines, including announcements from Qantas about reduced capacity and services, indicate that demand may drop further in coming weeks.

We are not yet able to see any clear impacts on demand in the Australian gasoline and diesel markets related to COVID-19 due to the broad range of customers and the different influences on demand.

Shares in Caltex Australia (ASX:CTX) are trading 1.56 per cent lower at $27.10.