• 4 minutes THE GREAT OIL PRICE PREDICTION CHALLENGE OF 2018
  • 9 minutes Time For Reaction: Trump Presses OPEC to Reduce Prices as Crude Trades Near $80
  • 15 minutes Nothing new in Middle East? Iran Puts On 'Show Of Strength' Military Exercise In Gulf
  • 1 hour Global Hunger Continues to Grow Driven By Climate Change
  • 31 mins Why Are the Maldives Still above Sea Level?
  • 1 day Toyota Agreed To Add Android Auto To Its Vehicles
  • 42 mins So oil touched $80! (WTI break $71 twice). What does the future hold?
  • 1 day China Tariff Threatens U.S. LNG Boom
  • 1 day A Buffett-type Solution and Canada's Problem
  • 12 hours Robots Roam the Seafloor Looking for Mineral Resources
  • 11 hours Transition Time: Volkswagen Announces "Electric for All" Campaign
  • 2 hours Freedom Of Internet: Google Plans Censored Version Of Search Engine In China!
  • 1 day Google And Facebook Lead Digital's March To Half Of The U.S. Ad Market
  • 1 day So about that psychological oil price ceiling of $80 ... Trump's Twitter sledgehammer is right on cue, again
  • 1 day As EU Divisions Deepen, Macron Stakes Out Electoral Turf
  • 10 hours Impeachment and stock market
Determining The Sweet Spot For Crude Oil

Determining The Sweet Spot For Crude Oil

The momentum for WTI and…

Oil Markets Unfazed By $200 Billion Trade War Escalation

Oil Markets Unfazed By $200 Billion Trade War Escalation

Another escalation in the U.S.-China…

China Refinery Throughput Drops To 9-Month Low

Refinery

Chinese refineries processed 50.31 million tons of crude oil in August, the lowest since December 2017, calculations by Reuters based on data from the National Statistics Bureau showed. On a year-on-year basis, however, the amount was 5.6 percent higher.

Over the period January-August 2018, refineries’ throughput totaled 400.41 million tons, which was 8.7 percent higher than in the comparable period in 2017.

Refinery throughputs in the world’s second-largest consumer of oil were earlier this year affected by a tax regime overhaul that squeezed the profit margins of the so-called teapots—the independent refiners that have spearheaded China’s oil consumption increase in the last three years.

Yet run rates are beginning to recover, the latest data suggests. Earlier this month, S&P Global Platts reported that teapot refiners raised run rates to 59 percent of capacity in August, up from 52.5 percent in July, the lowest in 19 months, resulting from maintenance work. September rates are likely to remain at roughly 60 percent, the data provided by a Chinese information provider suggested.

The teapot refineries have 61.59 million tons of crude oil import quotas left this year, S&P Global Platts reported separately, after an August intake of foreign oil surprised the market with a decline versus an expected pick-up as a result of the end of maintenance season. An active typhoon season made it harder for vessels to dock and was in part at least responsible for the draw in imports. The other factor was the refiners’ tighter cash reserves following the tax regime overhaul.

Related: Maduro Seeks New Funding On Visit To China

Over the first eight months of the year, according to Platts data, teapots imported 64.38 million tons of crude, which was just 0.6 percent higher than in January-August 2017, again because of tighter cash.

Whether or not teapots will fill their remaining quotas has yet to be seen, as their financial position changes and as the ongoing U.S.-China trade conflict worries the market with uncertainties about the future of Chinese oil demand.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Salamander on September 16 2018 said:
    The Chinese economy is growing 0.6% per year as oil consumption is a good index of economic growth. Economic contraction soon follows. Call it the Trump effect. China must import $500 billion per year from USA or lose $500 billion per year of exports. If Xi does not act soon President Trump will rip his face off.

Leave a comment

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