Caltex Says Oil Price Fall Positive; Expands Refiner Margin

Caltex Australia Ltd. (CTX.AU) said Friday a sharp fall in the oil price will have a positive impact on its earnings by expanding margins.

Nymex crude tumbled 8.7% Thursday to US$99.80 a barrel on fears higher prices could stunt the global economic recovery. By 0328 GMT, it had recovered slightly to US$100.55 in screen trade.

There is a time lag between when Caltex buys oil to turn into gasoline and when that cost can be passed through to the market.

"In the first quarter of 2011, the sharply rising crude price and the associated timing lag for price adjustments had a negative impact on Caltex's first quarter result," Caltex Investor Relations Manager Fran van Reyk said in an e-mailed statement.

"In the event of a fall in the crude price, the reverse is true," van Reyk said.

-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692; Ross.Kelly@dowjones.com

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