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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL
China is expected to import a record-level of 11.8mbpd of crude oil this year due to increased demand for fuel, as travel is picking up, and new refineries coming onstream, analysts said.
- China's crude imports may rise between 500kbpd and 1mbpd this year to as high as 11.8 million bpd, with previous records at 10.8mbpd, according to analysts from four industry consultancies - Wood Mackenzie, FGE, Energy Aspects and S&P Global Commodity Insight.
- With domestic consumption rising and lucrative export markets to supply, the four consultancies saw Chinese refineries raising crude throughput by between 850kbpd to 1.2mbpd over 2022 levels, an increase of between 6% to 9%.
- Since the removal of COVID controls in December, China's demand for gasoline and jet fuel has risen. Gasoline and jet fuel would account for around 50% and 30% of total growth in demand for liquid fuels, respectively. Jet fuel consumption would reach 90% of pre-COVID levels by end-2023, Sun Jianan, an analyst at Energy Aspects said.
- Demand for diesel and petrochemical feedstock naphtha, may grow more slowly as it will take longer for the recovery in China's manufacturing and property sectors to materialize, said FGE analyst Mia Geng and Energy Aspects' Sun.
- Two new refineries - PetroChina's Guangdong Petrochemical and Jiangsu Shenghong Petrochemical with a combined capacity of 520kbpd - are expected to enter commercial operation in coming months, industry sources said.
- A third greenfield refinery, the 400kbpd plant being built by Shandong Yulong Petrochemical, may also begin crude imports for possible test runs at end-2023, a company source told Reuters.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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