- China’s oil imports and crude processing rose last month as refineries returned from seasonal maintenance, while net exports of fuel products rose after the allocation of a new quota.
China’s oil imports and crude processing rose last month as refineries returned from seasonal maintenance, while net exports of fuel products rose after the allocation of a new quota.
Inbound oil shipments rose to 9.83 million barrels per day, the highest level since May, according to Bloomberg calculations based on government data released Monday. Crude processing rose 9% from the previous month to 13.88 million barrels per day, the most since February.
China’s crude purchases are poised to increase during the final quarter of the year after Beijing issued a new quota for oil imports and fuel exports. Refineries can increase processing by 500,000 barrels per day over the past three months just to utilize the new allocations, according to Energy Aspects. Refining could increase further as new plants start, including Shenghong Group.
The volume of refining capacity under maintenance fell to 28.3 million tons as of Sept. 29, down from 48.7 million tons on Aug. 25, according to industry consultancy OilChem. Meanwhile, processing rates for independent refineries in Shandong province rose to 69.1% of capacity in the week ending Oct. 21, the highest level since July, OilChem data shows.
China’s net fuel exports rose 17% from the previous month to 3.37 million tons, the highest level since June 2021. Beijing is trying to revive economic growth by allowing refineries to ship more fuel overseas.
Source: Bloomberg
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