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Shandong CDU Rates Hit 2-Year Low: OilChem

OIL PRODUCTS

Shandong independent refineries’ CDU operating rate fell to a two-year low, according to OilChem.

  • The CDU operating rate at Shandong’s teapots was 50.52% as of July 4, down 9.65 percentage points compared to the start of 2024, and down 10.28 percentage points on the year.
  • The low operating rates have resulted in falling production. Weekly gasoline output from the teapots was 477.3k mt in the week to July 4, the lowest since March 2020.
  • Refineries have actively cut their production due to poor refining profits and soft demand. Yet, this has failed to boost gasoil prices, OilChem said.
  • The slowdown in economic development has supressed the confidence of downstream users in construction, while the sales of LNG-fuelled trucks has further cut gasoil demand.


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Shandong independent refineries’ CDU operating rate fell to a two-year low, according to OilChem.

  • The CDU operating rate at Shandong’s teapots was 50.52% as of July 4, down 9.65 percentage points compared to the start of 2024, and down 10.28 percentage points on the year.
  • The low operating rates have resulted in falling production. Weekly gasoline output from the teapots was 477.3k mt in the week to July 4, the lowest since March 2020.
  • Refineries have actively cut their production due to poor refining profits and soft demand. Yet, this has failed to boost gasoil prices, OilChem said.
  • The slowdown in economic development has supressed the confidence of downstream users in construction, while the sales of LNG-fuelled trucks has further cut gasoil demand.


Keep reading...Show less