China Daily Oil Summary: Refinery Processing to Fall in Nov

Chinese refiners are expected to process 15.1m b/d in November, down from 15.37m b/d in October according to FGE with cuts at both state refiners and teapots.

• China’s independent refineries cut purchases of Venezuelan heavy feedstock bitumen blend in October as rising competition emerges after the US eased sanctions on the South American nation last month according to Platts sources.
• Feedstock imports among independent refineries in China’s Shandong Province fell 7.41% on the month in October to 10.06m mt, according to OilChem. Despite rising crude oil imports, overall feedstock arrivals fell because of lower bitumen and fuel oil deliveries.
• Chinese refinery utilisation rates at teapots in the refining hub of Shandong province are averaging about 57% in early November - down from about 65% in early October, according to China-based consultancy Longzhong.
• Lower China refining margins means lower appetite for crude oil by the world’s biggest oil consumer in the next few months according to the head of Vitol Asia Mike Muller in the Gulf Intelligence daily energy podcast.
• YUAN: The currency strengthening to 7.2756 against the dollar from previous close of 7.3133.
• FROM THE PRESS: China will actively pursue joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as it seeks to promote economic globalisation with other countries, according to Premier Li Qiang.
• China should expand government debt and boost credit to drive the growth of financial assets in society which will increase nominal income and help restore consumption in the short term, said Zhang Bin, deputy director of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences.