Refining Marker Margin

BP started using a refining marker margin (RMM) from 2011 and have made certain changes to reflect the impact of planned divestments and changes in global supply and demand balances. The rule of thumb is approximate, and for 2015 is based on BP's portfolio at the start of the year

The Refining Marker Margin (RMM) uses regional crack spreads to calculate the margin indicator and does not include estimates of fuel costs and other variable costs. The RMM is similar to the approach used by many of our competitors.

This page sets out how BP calculates its RMM.

RMMs are simplified regional margin indicators based upon product yields and a single "marker" crude oil deemed appropriate for the region. (e.g. Brent for Europe and WTI for the USMW). For example being a single marker crude, the RMM does not include the impact of heavy Canadian crude in our US refining system.

Regional RMM descriptions

Region
Region
Crude
Crude
Refinery
Refinery
Gasoline
Gasoline
Gasoil
Gasoil
Region
US Mid West
Crude
WTI
Refinery
Coking
Gasoline
66.7%
Gasoil
33.3%
Region
US North West
Crude
ANS
Refinery
Coking
Gasoline
60.0%
Gasoil
40.0%
Region
North West Europe
Crude
Brent
Refinery
Cracking
Gasoline
50.0%
Gasoil
50.0%
Region
Mediterranean
Crude
Azeri Light
Refinery
Cracking
Gasoline
50.0%	
Gasoil
50.0%	
Region
Australia
Crude
Brent
Refinery
Cracking
Gasoline
50.0%	
Gasoil
50.0%	

BP RMM Crude Unit Capacity Regional Weightings (2017)

US Mid West
US Mid West
US North West
US North West
North West Europe
North West Europe
Mediterranean
Mediterranean
Australia
Australia
US Mid West
27.1%
US North West
12.5%
North West Europe
40.4%
Mediterranean
5.8%
Australia
14.1%

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