Refining Marker Margin
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BP Trading Conditions Update - Refining Marker Margin (RMM)
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 2013 is based on BP's portfolio at the start of the year excluding announced divestments.
The 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 Refining Marker Margin (RMM)
RMMs are simplified regional margin indicators based upon product yields and a "marker" crude oil deemed appropriate for the region. (e.g. Brent for Europe and WTI for the USMW).
RMMs are simplified regional margin indicators based upon product yields and a "marker" crude oil deemed appropriate for the region. (e.g. Brent for Europe and WTI for the USMW).
| Regional RMM descriptions | |||||||
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Region | Crude | Refinery | Gasoline | Gasoil | ||
|---|---|---|---|---|---|---|---|
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| US Mid West | WTI |
Coking |
66.7% |
33.3% |
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| US North West | ANS |
Coking |
60% |
40% |
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| North West Europe | Brent |
Cracking |
50.0% |
50.0% |
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| Mediterranean | Azeri Light |
Cracking |
50.0% |
50.0% |
|||
| Australia | Brent |
Cracking |
50.0% |
50.0% |
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| BP RMM Crude Unit Capacity Regional Weightings (2013) | ||||||
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|
US Mid West | US North West | North West Europe | Mediterranean | Australia | |
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25.4% |
12.1% |
38.0% |
5.6% |
18.9% |
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