1.1.4 Petroleum Products Spread Average Price 2022 2021 %Change Dubai Crude Oil (USD/bbl) 96.34 69.24 39% Petroleum (USD/bbl) Naphtha - Dubai (13.2) 1.4 N.A. ULG95 - Dubai 18.8 11.1 69% Gas Oil 0.05%S - Dubai 34.3 6.7 412% FO 180 3.5%S - Dubai (14.1) (4.9) (188%) Lube Base Oil (USD/MT) 500SN-FO 180 3.5%S 678 845 (20%) 150BS-FO 180 3.5%S 837 1,234 (32%) Asphalt-FO 180 3.5%S 16 (11) 245% The spread between Petroleum products and raw material The spread between Petroleum products and Dubai • Naphtha Spread - Lower: Naphtha - Dubai spread in 2022 was USD -13.2 per barrel decreasing by USD 14.6 per barrel from USD 1.4 per barrel in 2021. This was because China’s Zero-COVID policy and real estate crisis hampered economic activities affecting petrochemical demand, hence lower demand for Naphtha, a raw material for petrochemical products. Naphtha - Dubai spread in 4Q22 was USD -14.6 per barrel enhancing by 38% from USD -23.4 per barrel in 3Q22. This was owing to rapidly declined crude oil price. In the meantime, Naphtha demand was still pressured by China’s Zero-COVID policy. • ULG95 Spread - Higher: ULG95 - Dubai spread in 2022 was USD 18.8 per barrel increasing by 69% from USD 11.1 per barrel in 2021. The product and crude oil prices fluctuated due to the Russia-Ukraine conflict. Concurrently, Gasoline demand was supported by lockdown eases in several countries throughout the world, while China’s Zero-COVID policy and recession concerns curbed some Gasoline demand in 2H22. ULG95 - Dubai spread in 4Q22 was USD 9.4 per barrel being down by 29% from USD 13.2 per barrel in 3Q22 as Gasoline demand softened seasonally and China’s Zero-COVID policy dampened demand. On the contrary, Gasoline supply increased as Naphtha spread was low, thus more Naphtha blending activities in Gasoline production. 175 Management Discussion and Analysis (MD&A) IRPC PUBLIC COMPANY LIMITED
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