• 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
  • 19 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 10 days They pay YOU to TAKE Natural Gas
  • 6 days What fool thought this was a good idea...
  • 9 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 5 days A question...
  • 15 days The United States produced more crude oil than any nation, at any time.
Game-Changing Research Unlocks New Wind Energy Potential

Game-Changing Research Unlocks New Wind Energy Potential

École Polytechnique Fédérale de Lausanne…

A Coal Stock Worth Buying?

A Coal Stock Worth Buying?

Buying coal stocks is not…

China’s Independent Refiners Look To Boost Output

Authorities in the province home to most of China’s independent refiners have asked the central government to allocate additional quotas for fuel oil imports as the refiners look to boost processing this month and next, but lack enough crude oil import quotas, traders and analysts have told Reuters.

The independent refiners, the so-called teapots based in the Chinese coastal province of Shandong, have received lower quotas to import crude oil this year.

So now they are seeking, through the provincial government of Shandong, to be allowed extra fuel oil supplies, which are cheap and can be processed into diesel and gasoline.

The Shandong government has asked for an additional 3 million metric tons of fuel oil quotas for the remainder of this year, according to Reuters’ sources.

China issued the last batch of crude oil import quotas for this year early last month, but independent refiners were allocated smaller quotas. The teapots have also exhausted most of the previously allowed crude import quotas for the year.

With limited crude import quotas and falling refining margins, Chinese refiners have reduced utilization rates in recent weeks, down from the record-high refinery throughput of 15.23 million barrels per day (bpd) in August. That record was smashed on the following month when China’s refinery throughput hit 15.48 million bpd ahead of anticipated strong demand for a week-long holiday in late September and early October.

In recent weeks, however, weakening margins and limited fuel export quotas have had refiners scale back utilization rates, analysts told Reuters earlier this week.

“Margins are almost disappearing as we're processing higher-priced crude while demand for refined fuel is weakening,” an anonymous official at a refinery of state-owned refining giant Sinopec told Reuters.

ADVERTISEMENT

Now if the Chinese government grants fuel oil import quotas to China’s independent refiners, they could boost processing using lower-priced fuel oil, including from Russia.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Mamdouh Salameh on November 09 2023 said:
    China’s independent refiners known as teapots are asking for additional quotas of oil imports so as to boost their output and exports.

    This tells a different story from the Western media disinformation hyping about a slowdown in China’s economy when the Chinese economy has been breaking all previous import records and has been the fastest-growing economy among all major economies in 2023 with its economic growth three times the United States' and seven times the EU’s.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert

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