• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 3 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 hours Reality catching up with EV forecasts
  • 2 hours A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 14 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 10 days US Oil Independence is a myth and will always be a myth
  • 6 days The Federal Reserve and Money...Aspects which are not widely known
  • 11 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 15 days Natural gas price to spike when USA is out of the market
  • 14 days "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 14 days *****5 STARS - "The Markets are Rigged" by The Corbett Report

Breaking News:

Freeport LNG Gets Regulatory Approval

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Chinese Oil Refiners To Ramp Up Output As Demand Rebounds

  • Chinese refiners have plans to increase processing rates by 10 percent next month as they see demand increasing, especially from abroad.
  • Refiners are hoping the government will issue another fuel export quota batch for up to 15 million tons.
  • China is also ramping up crude oil imports, which will only add pressure to freight rates and increase oil prices.

Chinese oil demand is on the mend, with several refiners planning to ramp up processing rates considerably, according to a Reuters report citing unnamed sources in the know.

Per these sources, at least three state-owned refiners and one private refining major have plans to increase processing rates by 10 percent next month from this, expecting higher demand for fuels, especially from abroad.

Europe is an obvious source of this higher demand after an embargo on Russian crude oil kicks into effect in December and an embargo on fuel imports follows in February. Currently, European buyers are still importing from Russia to stock up ahead of the embargo but once that takes effect they will need to look for alternatives and China is one of them.

ADVERTISEMENT

In anticipation of this higher demand, refiners in China expect the government to issue another fuel export quota batch for up to 15 million tons, the Reuters sources also said.

"We're raising runs next month in preparation for a possible opening in exports, though nobody has a clear idea how big the opening would be," one official from a state-owned refiner told the news agency.

ADVERTISEMENT

"I believe that China-bound freight rates strengthen on the hope of a China demand recovery... the rumour of an extra large amount of product exports in Q4 also fuelled market optimism," an analyst from Vortexa Analytics told Reuters.

Meanwhile, China is also ramping up oil imports, with the daily average for August at 9.5 million bpd, which was a marked improvement on July, although still lower than the average oil import rate for August 2021.

As demand for oil from China grows, so will freight rates as the country steps up its oil-buying from around the world. According to Refinitiv data cited by Reuters, the rate for a Very Large Crude Carrier trip between the Gulf of Mexico or the Middle East to China has risen to $10 million.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage


ADVERTISEMENT


ADVERTISEMENT



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