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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
Iranian crude and fuel oil imports reached 1.2mbd in 1H September, just shy of August’s record according to Vortexa, while the flows into Shandong province surged to year-to-date highs.
- 85% of Iranian barrels have gone into Shandong province so far this year.
- Tighter ESPO availability because of competition from Indian refiners has driven teapots towards discounted Iranian barrels this year, as they aim to reduce their feedstock costs and boost refining margins.
- Chinese authorities recently rolled out a series of incentives to encourage teapot refiners to boost run rates including third batch export quotas and re-permitting imports of bitumen mix under certain conditions.
- They also allowed some Iranian barrels imported as other heavy oil according to Vortexa.
- It has allowed teapots to ramp up operating rates, helped by heavily discounted feedstock.
- It is bringing old, inefficient and idle refining capacity back online defeating the original intent of the crude import quota mechanism.
- Teapots in Shandong province raised processing rates by 0.11 ppt to 63.5% of capacity in week to Sept. 22, highest since Aug. 11 according to OilChem.
source: Vortexa
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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