China’s Oil Refiners Face Low Profits, Run Cuts on Fuel Glut
- Export channel isn’t offering any relief to domestic fuel glut
- Reducing crude throughput is uncommon at this time of year
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China’s private and state-owned oil processors are grappling with lean or even negative margins due to the start up of a new mega-refinery and the slowdown in consumption of fuels such as diesel.
Many private refiners, or so-called teapots, are facing losses from turning crude into fuels and petrochemicals this month, said traders. That’s despite their use of cheaper feedstock comprising sanctioned crudes from Iran, they said, without elaborating on the companies affected. Teapots account for about a quarter of China’s refining capacity.