• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 2 hours OPEC will consider all options. What options do they have ?
  • 2 hours Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 4 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 10 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 2 hours A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 5 hours What to tell my students
  • 3 hours China Threatens to Withhold Rare Earth Metals
  • 10 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 5 hours With Global Warming Greenland is Prime Real Estate
  • 18 hours TRUMP'S FORMER 'CHRISTIAN LIAISON' SAYS DEEPWATER HORIZON DISASTER WAS GOD'S PUNISHMENT FOR OBAMA ISRAEL DIVISION
  • 17 hours Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents, building nukes * Too late now
  • 19 hours Flaring is at Record Highs in Texas
  • 14 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"

China Oil Refinery Throughput Jumps 4% In July

China oil port

Refinery throughput in China went up by 4 percent last month, to a total 52.6 million tons, or about 12.44 million bpd, Reuters reports, citing data from the National Bureau of Statistics.

That’s down from a record-high processing rate of 12.68 million bpd, recorded first in January and February this year and then again in April. It is still pretty strong going thanks to higher demand for crude from independent refiners who are building new refining capacity.

Independent refiners currently account for about 30 percent of China’s oil processing capacity, which stands at 15 million barrels daily and rising. According to an analysis from Bloomberg released in March, this year will see refining capacity additions of as much as 890,000 bpd.

With higher processing rates imports of crude also jumped in July. These averaged 9.66 million bpd, up by 14 percent on the year. The trend could soon reverse, however, as the country prepares for its National Day in October. The preparations involve reducing industrial activity to cut pollution levels. These reductions are seen affecting both imports and refinery processing rates during the third quarter of the year.

The rebound in refining rates is somewhat surprising as it comes amid a persistent glut of fuels, the result of increased independent refiner activity. This glut has led to a squeeze in refining margins both in China and in neighboring countries as the excess fuel spills into the rest of Asia. Yet the government once again granted generous crude import and fuel export quotas to refiners this year.

The July increase in imports also indicates strong oil demand, but U.S.-Chinese trade tensions have had some analysts worrying that U.S. oil could fall victim to the tariff war. Even the risk of tariffs is reason enough for Chinese refiners to choose another source of oil as they did last year when trade tensions spiked.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play