• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 12 hours Evergrande is going Belly Up.
  • 3 hours U.S. Presidential Elections Status - Electoral Votes
  • 15 hours World’s Biggest Battery In California Overheats, Shuts Down
  • 4 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 5 hours Poland Expands LNG Powered Trucking and Fueling Stations
  • 2 days And now, hybrid electric locomotives...
  • 2 days Ozone layer destruction driving global warming
  • 2 days The unexpected loss of output from wind turbines compels UK to turn to an alternative; It's not what you think!
  • 1 day The coming Cyber Attack
  • 1 day Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 2 days 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers
  • 2 days The Painful Death of Coal

China Refinery Runs Fell To 15-Month Low In August

Refinery runs in China fell to the lowest in 15 months in August on the back of a sizeable cut in fuel export quotas and the latest wave of Covid-19, Reuters reports, noting that average daily throughput stood at 13.74 million bpd.

The decline in refinery run rates comes amid a government crackdown on independent refiners—the so-called teapots. These teapots have come to account for a considerable portion of oil imports and fuel exports, which have contributed to a regional fuel glut that pushed down refiners' margins.

Beijing moved has involved investigations into alleged violations of environmental legislation and tax avoidance. The government also ordered state oil majors to stop trading their oil import quotas with teapots.

In addition, the authorities reduced the number of oil independents that are allowed to import by as much as 35 percent in June. Fuel export quotas were also reduced.

Independent refiners account for a quarter of China's refining capacity, which in June this year hit a new high in run rates, at 14.8 million bpd. This, however, was lower than the average daily run rates for the first half of the year, which stood at 15.13 million bpd, according to data from the Chinese customs authority released in July.

This, however, fell to 13.91 million bpd in July, and per the latest data cited above, continued to fall in August. Meanwhile, thanks to record-high run rates earlier in the year, the eight-month average since the start of 2021 has been higher than the average number for the first eight months of 2020. This could still change if run rates continue to slide.

State refiners processed more oil in August to offset the fall in independents' output resulting from the quota cuts. But at least one, Sinopec, has no plans for further increases, according to the Reuters report, after the refiner said its fuel exports in August were 10 percent lower than a year earlier.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | 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