Chinese refiners are expected to cut oil production this month by roughly 6%, a scale last seen two years ago, in the early days of the Covid-19 pandemic.
The reduction comes to ease overcrowded inventories as recent pandemic lockdowns have reduced fuel consumption, industry sources and analysts said.
Refineries are expected to reduce crude oil processing in April by 3.7 million tonnes, or 900,000 barrels per day (bpd), equivalent to 6.3% of national average production in the latest annual figures, according to estimates from six sources and analysts. of the sector.
Slowing demand in the world’s biggest oil importer would help cool global oil prices, which remain above $100 after hitting 14-year highs last month, driven in part by fears of supply disruption following the invasion of the US. Ukraine by Russia.
Falling demand has also forced state-owned refiners to export more fuel from their burgeoning stockpiles, bucking government-led efforts to reduce overseas shipments after the Russia-Ukraine conflict raised supply concerns.
The companies are expected to export approximately 2 million tonnes of gasoline, jet fuel and diesel this month, sources said, which could also allow Chinese refiners to reap the benefits of record Asian refining margins.
Customs data released on Wednesday showed that China’s crude oil imports fell 14% in March from a year earlier.
Imports were pressured by deteriorating margins at small, independent refineries and seasonal maintenance, and with the additional impact of falling demand, further declines are expected in April.
Source: CNN Brasil
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