Traders Snap Up Oil Ahead of Expected Jump in Chinese Demand
- Imports by private refiners to rise upon release of 2021 quota
- Those holding extra supply may float, slow-steam until January
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Oil traders are buying up cargoes and sending them toward China, hoping to capitalize on an expected surge in demand at the end of the year when independent refineries there get new import licenses for 2021.
Firms including Mercuria Energy Group, Unipec and CNOOC were among those seen actively purchasing cheap spot cargoes of Angolan, Nigerian and Russian crude for as early as November loading, traders said, with the volumes larger than normal. The cargoes will likely make their way slowly to China, the traders said. Press officials from Mercuria and Sinopec declined to comment, while CNOOC didn’t respond on the matter.