Mid-Dec Trader Diesel Storage Capacity Utilization Grew
According to SCI’s statistics, up to December 17, 2020, the average storage capacity utilization of diesel at refined oil traders was 27.73%, up 0.31% from late November.
In H1 December, due to the optimistic news about COVID-19 vaccine, the international crude oil prices fluctuated upward, supporting the refined oil market in China. Meanwhile, supported by China’s e-shopping day on December 12, the transportation and logistics industries performed well. In addition, the operating rates at some infrastructural projects were raised to some extent as the end of 2020 approached. Accordingly, the overall demand for diesel in China improved, and many diesel traders were active in replenishment, resulting in an increase in their diesel storage capacity utilization.
In terms of diesel prices, in H1 December, the international crude oil prices trended up, and the National Development and Reform Commission raised the retail ceiling prices of gasoline and diesel. Accordingly, China’s diesel wholesale prices grew as well. Therein, the diesel wholesale prices at most state-owned refineries increased by RMB 200-300/mt, and the prices at a few state-owned refineries event surged by over RMB 300/mt. As for Shandong independent refineries, supported by the rise in international crude oil prices and the improvement of diesel sales, the prices of diesel went up dramatically from late November.
