For First Time In A Decade China Becomes Net Fuel Oil Exporter … For A Month
by Joao Peixe
For the first time in more than a decade China actually became a net exporter of fuel oil, however it seems that that remarkable achievement will only last for a month.
According to Energy Aspects, in August, for the first time since 1999, China shipped out more fuel oil than it imported; but due to this month of limited buying domestic stocks began to dwindle and refiners in September were forced to increase imports, once again turning the country into a net importer.
A fuel oil purchasing manager at a Chinese company said that “demand at this point and for the next few weeks will be slightly better than before as inventories are diminishing and will need to be replenished.”
China mostly uses fuel oil in its various small, independent refineries, which turn the hydrocarbon into more valuable products such as gasoil and gasoline.
This year China National Chemical Corp, the largest operator of small refineries in China, won a crude oil import quota of 200,000 barrels a day, reducing its demand for fuel oil, and therefore the demand on the fuel oil market.
China has also decided to open its crude oil import market to more refiners next year, offering even more import quotas, and therefore further reducing the demand of fuel oil.
By posting your comment, you agree to abide by our Posting rules