November 25, 2022 14:30 GMT
China refiners have reduced run rates as new covid outbreaks and lockdown measures are impacting China’s domestic oil demand.
- The run rate at Shandong independent refiners fell 3% for the week to Nov 18 falling below historical seasonal averages according to Bloomberg.
- The additional fuel export quotas of 15m tons, released at the end of September, has supported diesel production, but weak domestic oil demand has pushed refiners to reduce overall output.
- Diesel output however increase by 10% to a record high of 18.8m tons in October.
- Refinery margins for diesel remain relatively healthy compared to other products, with weaker demand for fuels such as gasoline and jet fuel.
Source: Bloomberg / National Bureau of Statistics of China
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