The rally comes as US refining margins have spiked near $70 a barrel, while European diesel margins have jumped to around $65 a barrel. US gasoline crack spreads also remain near historic peaks.
Refined product inventories in major hubs such as the US are at their lowest seasonal levels in decades, adding to the strength in refining margins.
Supply disruptions add to refining margin strength
Global refinery throughputs are forecast to decline by 2.5 million barrels per day (mb/d) on average in 2026, before rebounding by 3.5 mb/d in 2027, according to the International Energy Agency (IEA).Meanwhile, Ukrainian strikes on Russian energy infrastructure have affected around 40% of Russia’s refining capacity, according to media reports. Some refineries in Russia and Belarus have also been impacted by maintenance shutdowns.
The combination of supply disruptions and lower refinery throughputs is supporting refining margins globally.
CPCL, MRPL stock performance
Shares of Chennai Petroleum rose up to 5.2% to an intraday high of ₹1,454.50 on Tuesday and were trading 2.66% higher at ₹1,419.20 as of 1.04 pm, while those of MRPL jumped about 6.7% to the day’s high of ₹189 and are currently trading 3.57% up at ₹183.48.
Chennai Petroleum shares have gained 13.8% month-to-date and 40% over the past three months, while the stock is up 54% over the past six months.
MRPL has gained 4% month-to-date and 20% over the past three months, although it remains down 7% over the past six months.On valuations, Chennai Petroleum trades at around 4.9 times FY27 estimated earnings, compared with 9.4 times for MRPL.
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