China Oil Product Exports Under Pressure in Q4: Vortexa
China’s clean product exports are expected to remain under pressure for the remainder of the year – with no current news on a fourth batch of quotas or conversion of other quotas such as LSFO for CPP exports according to Vortexa.
- Both Chinese state and independent refiners are expected to cut runs further in November after they already dipped in October.
- Margins are under pressure because of a lack of export quotas but also because of overall boosted clean product exports out of Northeast Asia in October according to Vortexa.
- The extra flows have helped to counterbalance the impact of refinery maintenance in the Wider Arabian Sea region but are also weighing on refining economics across the Pacific in the Americas.
- Vortexa said as a result, weaker runs out of China would be welcomed by other refiners around the globe in a likely boost for their margins.