Supplies & Margins Impacting Chinese Refineries

Supplies & Margins Impacting Chinese Refineries

This week in China all eyes are on Saudi Arabia’s crude oil production and the refining margins at Chinese independent refineries.

The attacks on crude oil facilities put a big dent in Saudi Arabia’s crude oil production, and then the national oil company Saudi Aramco strives to maintain uninterrupted crude oil supplies to its overseas clients. But according to the latest information, three state-owned refineries in China expect delays in Saudi crude oil shipments in the fourth quarter. Therefore, Chinese refineries keep eyes on the recovery of Saudi Arabia’s crude oil production.

Still on China.

Chinese independent refineries began to have positive refining margins from the beginning of July, mainly supported by the growth in the market demand. Especially in September, the increase in crude oil prices gave the independent refineries an incentive to raise their product prices. In addition, the Mid-Autumn holiday and the lift of the fishing ban supported the market demand for gasoline and diesel. Therefore, according to SCI, the oil refining margins among Shandong independent refineries averaged over 560 RMB/mt as of September 20. At the same time, the National Day holiday is coming, and this will also push up the market consumption of gasoline and diesel. Therefore, the independent refining margins are predicted to continue rising next week.

OK. Thanks for ending your September with us. And have a nice October ahead.