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Massive Oil Refining Capacity Idle in China as Prices Soar

  • Around a third of nation’s fuel-processing is out of action
  • Beijing tightly controls industry via a strict quota system
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WATCH: Around a third of Chinese fuel processing capacity is currently out of action. Stephen Stapczynski reports.Source: Bloomberg
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As gasoline prices soar and the US considers invoking Cold War-era laws to boost production, there’s a massive pool of oil refining capacity on the other side of the Pacific Ocean that’s sitting idle. 

Around a third of Chinese fuel-processing capacity is currently out of action as Asia’s largest economy struggles to put the coronavirus behind it. If tapped, the extra supply of diesel and gasoline could go a long way to cooling red-hot global fuel markets, but there’s little chance of that happening.