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China's oil demand to support private refineries

China's oil demand to support private refineries

  • Categories:Industry News
  • Author:
  • Origin:
  • Time of issue:2020-03-31 14:57
  • Views:

China's oil demand to support private refineries

  • Categories:Industry News
  • Author:
  • Origin:
  • Time of issue:2020-03-31 14:57
  • Views:
Information

According to foreign media reports, 31 morning Beijing time, east of Qingdao port in China, a large number of oil tankers are waiting for unloading crude oil, the waiting time is often more than two weeks.

The cause of this situation is called "tea" the surge in refinery crude oil imports. Is an attractive place for private Chinese refineries in shandong province, has nearly 20 independent oil refinery, the refinery due to small production, known as "tea" (teapot) oil refinery. These small refineries are stirring China's oil industry, and stimulate the global market.

In order to strengthen the domestic oil market competition, the Chinese government last year to allow private import crude oil refinery. So far, 27 refineries or get the import license, or is waiting for approval.

EnergyAspects MichalMeidan analysts said: "if the teapot refiners procurement to drop, will influence the price of oil. This will lead to China's crude oil imports declined, and cause for China's economic health and the concerns of the purchasing desire."

These "" the teapot refiners are helping will be the world's second largest oil importer needs to maintain at a high level, to support the international oil prices. Energy consultancy EnergyAspects estimates that only last month, the refinery crude oil imports up to 1.2 million BPD, equivalent to about 15% of the total import crude oil in China.

Continued downturn in international oil prices, China's "" the teapot refiners to import crude oil from the international market, so as to make them with inefficient state-owned oil company competitive advantage, the latter are often in accordance with the contract to import crude oil at a high price for a long time, or from its own subsidiary purchasing the high cost of crude oil. Fitch BMIResearch estimates its research institutions, "" the teapot refinery production of gasoline and diesel than a barrel of sinopec large competitors' products such as average about $10 less.

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