China: Imports of Diesel to Impact on Refining Margins
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Wednesday, 16 November 2011 |
Chinese refiners have taken the unusual step of importing 320,000 tonnes of diesel to help combat domestic shortages of the fuel. According to traders and industry sources in china, the trading arm of top refiner Sinopec and PetroChina have purchased a total of 240,000 tonnes for November and 80,000 tonnes for delivery in December.
The demand from the world’s second-largest economy is likely to squeeze an already tight market, though the situation is expected to improve in December, with both Sinopec and PetroChina bringing new crude refining units online and plants returning from maintenance.
Local authorities have ordered the top two state-owned oil companies to increase supply of diesel to areas desperately in need of the product, and particularly to power plants and private diesel generators in factories. The diesel flow into China is likely to boost Asian refining margins for producing middle distillates such as diesel, which was already at a three month high of $19.44 per barrel.
PetrolWorld 16112011
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