China Daily Oil Summary: Yulong Refinery Nearing Start

Shandong’s 400k b/d Yulong refinery could be nearing a start with the refiner buying 740kbbl of ESPO crude for late July arrival, according to Bloomberg.

• China’s gasoil market is expected to gain momentum some in July from rising speculative demand amid speculations of improved consumption levels in August and September, OilChem said.
• The price difference between China’s bonded bunker LFSO and HSFO fell to $50/mt as of June 25, hitting a four-year low according to OilChem.
• Crude storage capacity utilisation rates among Shandong Independent refineries fell 0.1 percentage points on the week to 44.2% for the seven days to June 28, OilChem said.
• FROM THE PRESS: The People’s Bank of China may gradually downplay the Medium-term Lending Facility as its policy interest rate, and instead use the 7-day reverse repo rate to smooth out the transmission mechanism, the Shanghai Securities News reported citing analysts.
• FROM THE PRESS: Chinese firms face continued weakness in domestic demand, as May’s data showed industrial profit growth decelerating to a 3.4% y/y increase in the first five months, down from 4.3% in the first four months, said Zhou Maohua, a macro researcher at the Financial Markets Department of Everbright Bank.
• STOCKS: The Shanghai Composite Index edged up 0.73% to 2,967.40 while the CSI300 index rose 0.22% to 3,461.66. The Hang Seng Index was increased 0.01% to 17,718.61.