• 3 minutes Biden Seeks $2 Trillion Clean Energy And Infrastructure Spending Boost
  • 5 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 8 minutes Gazprom fails to exempt Nord Stream-2 from EU market rules
  • 18 hours The Truth about Chinese and Indian Engineering
  • 8 hours Trumpist lies about coronavirus too bad for Facebook - BANNED!
  • 9 hours The World is Facing a Solar Panel Waste Problem
  • 2 days The Core Issue Of US Chaos..Finally disclosed
  • 1 hour Pompeo upsets China; oil & gas prices to fall
  • 2 hours Why Oil could hit $100
  • 1 hour China's impending economic meltdown
  • 22 hours Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 22 hours Sell Natural Gas Benefits to Grow the Market!
  • 1 day Brent above $45. Holding breath for $50??
  • 21 hours Trump Suggests Delaying Election Amid Fraud Claims
  • 1 day Rational analysis of CV19 from Harvard Medical School
  • 2 days Russia Trying To Steal COVID-19 Vaccine Data, Say UK, U.S. and Canada
  • 2 days Open letter from Politico about US-russian relations
Why Energy Demand Is Plummeting In The U.S.

Why Energy Demand Is Plummeting In The U.S.

As the COVID-19 pandemic continues…

China’s Crude Oil Imports Drop From Record Highs

China’s Crude Oil Imports Drop From Record Highs

China’s crude oil imports are…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

China Floods The Market With Fuel As Coronavirus Shatters Local Demand

China’s fuel exports are booming amid battered domestic demand due to the coronavirus outbreak, analysts and trade sources tell Reuters as higher Chinese exports flood the Asian market, which sees depressed demand from the outbreak itself.

In the first quarter of 2020, China’s demand for refined oil products will slump by 35.7 percent year on year, and the market will find itself in a surplus, despite the reduced refinery run rates at Chinese refiners, according to the research arm of the China National Petroleum Corporation (CNPC), cited by Reuters.  

Due to weak fuel demand and depressed industrial activity, Chinese refiners—from the biggest refiner in Asia, Sinopec, to the independent refiners in Shandong—have cut refinery runs, while commodity trading houses and oil majors are scrambling to find spot buyers for crude oil outside China.  

According to estimates from IHS Markit, the virus outbreak is set to knock out at least 1.7 million barrels per day (bpd) of refinery runs in China in February, compared to an otherwise projected growth of 760,000 bpd.

This would be “the sharpest single-month decline of 1 MMb/d in history,” Xiaonan Feng, Research Analyst at IHS Markit, said earlier this month.

“Refineries will likely need to extend their production cut throughout March in order to work off the excessive product inventory, but the magnitude of the reduction will likely come down to 500,000-600,000 b/d on a yearly basis if demand recovers following the resumption of business activities and easing of government restrictions,” Feng added.

Chinese oil refiners have cut their daily run rates further, to around 10 million bpd last week—the lowest level since 2014, according to industry insiders who spoke to Bloomberg.

The slowdown in China’s industrial activity is causing the worst shock to oil demand in over a decade, Jeff Currie, global head of commodities research at Goldman Sachs, said in an interview on Bloomberg earlier this month.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News