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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 2018 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
Crude Refinery Gasoline Gasoil
US Mid West WTI Coking 66.7% 33.3%
US North West ANS Coking 60.0% 40.0%
North West Europe Brent Cracking 50.0% 50.0%
Mediterranean Azeri Light Cracking 50.0% 50.0%
Australia Brent  Cracking  50.0%   50.0% 

BP RMM Crude Unit Capacity Regional Weightings (2018)

US Mid West US North West North West Europe Mediterranean Australia
 27.0% 12.5% 40.3% 5.8% 14.4%