China’s Fuel Thirst Nurses Asia’s Oil Market Back to Health
- Fuel contango eases as more China-made products stay domestic
- Asia’s top economy leads recovery after virus decimates demand
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As China’s demand recovery outpaces the rest of Asia, falling fuel exports from the refining giant are providing a much-needed buffer for other processors in the region still grappling with lowered consumption and poor margins.
China is curbing exports with refiners selling fuels locally amid a rebound in demand and move to cash-in on higher prices due to a government-imposed “floor price,” said traders and analysts. Shipments so far this month have halved from April and are a quarter of the monthly average in the first quarter, according to Kpler.