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Formosa Petrochemical Shares Reclaim NT$100 Mark Amid Oil Price Rally
Energy Minerals · Oil Refining/Marketing · economic_daily · 2026-11-02
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Formosa Petrochemical shares surged over 5% as rising global oil price forecasts and strong refining margins for diesel and gasoline bolster the company's outlook.
What Happened
Oil Price Outlook: Goldman Sachs recently raised its Brent crude price forecast to $105 per barrel by December 2026, providing a significant tailwind for refining margins.
Refining Margins: Formosa Petrochemical expects strong fourth-quarter refining margins, driven by geopolitical risks and seasonal demand that keep diesel supplies tight.
Diesel Demand: With the heating season approaching in Europe and North America, and supply constraints from Russia and the Middle East, Asian diesel spreads are expected to outperform historical averages.
Gasoline Dynamics: Despite the off-peak season, low inventory levels and a shift in refinery production toward diesel have kept gasoline spreads significantly higher than typical winter levels.