China to Become Even More Dominant Oil Buyer on Tax Revamp
- Levy on fuel blendstocks set to lift crude imports by refiners
- Flurry of spot market purchases boosting cargo differentials
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China is set to extend its dominance in the global oil market as planned tax adjustments spark a chain reaction, prompting processors to boost crude imports and raise refinery run rates.
From mid-June, the top crude importer will introduce a levy on inbound flows of three oil-related items -- bitumen mix, light-cycle oil, and mixed aromatics -- that are often used to make low-quality fuels or processed in refineries. Faced with the prospect of costlier products, Chinese buyers are on the hunt for barrels of suitable crudes as replacements.