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China to Boost Diesel Exports to Asian Markets

OIL PRODUCTS

China is expected to export more diesel to other Asian markets this month amid high inventories and better export margins.

  • Soft diesel demand over winter and the recent Lunar New Year holiday have led to bloated inventories in China, said Lin Ye, analyst at Rystad Energy. Timespreads in the Asia market are starting to reflect the prospect of more fuel flooding to the region.
  • China’s CNPC is expecting refined oil product surplus of 50mn tons this year.
  • Chinese diesel export margins averaged $10/bbl in February, up from $5.50/bbl in January, data from Energy Aspects showed.
  • State-owned refiners are planning to boost monthly exports of diesel, gasoline and kerosene by about 10% in March, Oilchem said.
  • The nation’s fuel exports may be more moderate during April and May, with some oil refiners poised to undergo plant maintenance, Jianan Sun, analyst at Energy Aspects, said.

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China is expected to export more diesel to other Asian markets this month amid high inventories and better export margins.

  • Soft diesel demand over winter and the recent Lunar New Year holiday have led to bloated inventories in China, said Lin Ye, analyst at Rystad Energy. Timespreads in the Asia market are starting to reflect the prospect of more fuel flooding to the region.
  • China’s CNPC is expecting refined oil product surplus of 50mn tons this year.
  • Chinese diesel export margins averaged $10/bbl in February, up from $5.50/bbl in January, data from Energy Aspects showed.
  • State-owned refiners are planning to boost monthly exports of diesel, gasoline and kerosene by about 10% in March, Oilchem said.
  • The nation’s fuel exports may be more moderate during April and May, with some oil refiners poised to undergo plant maintenance, Jianan Sun, analyst at Energy Aspects, said.