• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 10 days Does Toyota Know Something That We Don’t?
  • 4 days America should go after China but it should be done in a wise way.
  • 10 days World could get rid of Putin and Russia but nobody is bold enough
  • 18 mins "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 12 days China is using Chinese Names of Cities on their Border with Russia.
  • 39 mins The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 1 day Even Shell Agrees with Climate Change!
  • 2 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 days How Far Have We Really Gotten With Alternative Energy
  • 12 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 13 days Putin and Xi Bet on the Global South
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 To Subsidize Refiners If Oil Prices Exceed $130

  • The Chinese government has announced that it will subsidize refiners if international benchmark crude prices hit $130 per barrel.
  • COVID lockdowns have crippled China's refinery output.
  • The Chinese government will offer subsidies to refiners initially for two months.

China will provide subsidies to its oil refiners if international oil prices jump to over $130 per barrel as the world’s largest crude oil importer looks to ensure fuel supply and protect businesses and consumers from surging fuel prices.

Should international benchmarks surge to $130 a barrel and stay there, the Chinese government will offer subsidies to refiners initially for two months, China’s Ministry of Finance said on Wednesday, as carried by Reuters. The subsidies will be calculated on the basis of the actual sales of diesel and gasoline of the refiners and fuel traders, according to the policy.

“(The subsidy) is to safeguard stable fuel supplies, ease costs for manufacturers and alleviate burdens for consumers,” according to the ministry.

Last month, China’s refining activity was very weak due to the COVID-related lockdowns. Strict lockdowns in Shanghai and the resulting depressed fuel demand led in May to the largest annual decline in Chinese refinery production in at least the past decade. China continues to implement its “zero-COVID” policy, which has triggered several limited lockdowns in major cities this month alone. The lockdowns have also weighed on international oil prices as the market fears a sudden new lockdown in the top crude importer.

Early on Wednesday, oil prices were rising by 1.5 percent, with Brent at over $119 per barrel—just over $10 a barrel before it reaches the Chinese $130-a-barrel trigger for refining subsidies.

The $130 oil level could soon be reached, at least according to Goldman Sachs. The investment bank continues to be very bullish on energy and believes that the upside risk in crude oil and refined products “is tremendously high right now,” Jeffrey Currie, global head of commodities research at Goldman Sachs, told CNBC’s Squawk Box earlier this week.

“At the core of our bullish view of energy is the underinvestment thesis,” Currie added.

“Ultimately, remember, the only way of solving these problems is to increase investment, so we stick to our guns of oil prices moving into the summer up into $140 a barrel range given record-level cracks, and that’s going to be a lot more upside to product prices,” Goldman’s Currie told CNBC.

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News