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China’s Refined Oil Market Bearish on Narrowing Crack Spread: OilChem

OIL PRODUCTS

China’s refined oil market will stay bearish in the near term on an anticipated fall in refining profits, shown by a narrowing crack spread, according to OilChem.

  • China’s gasoline crack spread has been falling since Aug. 6, OilChem added.
  • China’s refinery margins have been under pressure recently, contributing to lower output and reduced CDU utilisation compared to previous years.
  • Domestic demand is also more sluggish. This will be worsened in the long term by greater EV use displacing gasoline demand, coupled with the adoption of LNG-fuelled trucks squeeing out diesel consumption.

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