Crude oil processing in China falls significantly in July – Commerzbank
The Global Energy Company (IEA) has revised its forecast for oil inquire a tiny downwards this year. This was as soon as on account of a significant slowdown in inquire in the 2d quarter, notably in the rising economies, the put the annual elevate was as soon as the lowest since 2020, which was as soon as impacted by the COVID-19 pandemic, Commerzbank’s Commodity Analyst Carsten Fritsch notes.
It less handsome for refineries to direction of mistaken oil
“In China, inquire was as soon as 110 thousand barrels per day lower than in the old year. The commence as a lot as the third quarter was as soon as additionally no longer very promising in China, as confirmed by the inclined mistaken oil imports and perhaps the most contemporary figures from the National Bureau of Statistics on mistaken oil processing in Chinese refineries. This fell to 13.9 million barrels per day in July, the lowest level since October 2022.”
“Within the first seven months of the year, mistaken oil processing remained 1.2% below the old year’s level. Closing time this came about was as soon as on the halt of 2022, when oil inquire in China recorded a hitherto unheard of annual decline on account of the strict COVID-19 policy. The explanations for the inclined processing are straightforward to identify. The low processing margins and subdued inquire for fuel decide up it less handsome for refineries to direction of mistaken oil.”
“The rising proportion of electric vehicles in the auto rapid scheme that the elevate in fuel inquire at some level of the summer season months, when inquire is high, is lower than in the old year. In accordance to the consultancy Oilchem, the capacity utilization of fair refineries in Shandong province, which is crucial for refining, was as soon as correct over 56% in July, 7.3 share parts lower than in the old year. The most contemporary downward revision of (Chinese) oil inquire by the IEA is on account of this truth unlikely to be the final.”
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