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OIL: China's Refiners to Raise Rates to 69.4% in July: OilChem

OIL

State and independent oil refiners in China may increase crude processing rates to 69.4% of capacity in July, according to OilChem cited by Bloomberg.

  • State refiners are expected to boost rates by 1.2% m/m, while run rates at independent refiners could increase by 1.6% m/m.
  • Daily gasoline consumption in July is likely to rise by 4.6% m/m to the highest level this year at 465k tons.
  • Refiners could raise gasoline yields to the highest this year at 24%, ahead of the expected recovery in demand.
  • An increase in summer travel is expected to boost consumption along with a rise in air-conditioning use in cars due to hot weather.

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