Singapore Gross Refining margin (GRM) is continuing its southward journey and making a 9-year low to US$2.4/bbl, down 17% MoM in Jan'19 owing to significant decline in crack spreads across products mainly Jet Kero, FO and Gasoline. US refinery utilization also declined marginally by 1.8% MoM to average 93.4% in the month of Jan'19. Arab Light-Arab Heavy differential declined further by 32% MoM to US$1.3/bbl whereas INR remained flattish at Rs70.7/US$ in the month of Jan'19. In Natural Gas space, LNG prices have softened further by 9% MoM to average US$7.8/mmbtu in Jan'19 as concern on economic slowdown is weighing upon. We expect Spot LNG prices to soft a bit more post winter season though strong demand from China is supporting the price. However, as almost ~92mtpa of new liquefaction capacity is under implementation mainly from Australia and US in medium and long term which would keep LNG prices low. Domestically, petroleum products sales improved by 4.5% YoY and 7.3% MoM to 18.5mmt in Dec'18 owing to 13.9% YoY rise in Naphtha, 5.6% in LPG, and 5% growth in FO. We keep our positive view on gas sector and maintain GAIL and Petronet LNG as our top picks. We had upgraded RIL to BUY from HOLD post Q3FY19 result and the stock is...