China’s Fuel Production Cuts Could Undermine Global Oil Demand
- Refineries most at risk are small independents in Shandong
- OPEC+ is seeking to revive output as Chinese imports shrink
Sales of the fuel averaged 13.2 million tons a month last year, down 9% from 2023 levels.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China’s pushing its oil refiners to reduce fuel output, raising new questions about demand in the largest importing nation just as the world’s drillers need buyers for the extra barrels they’re adding to the market.
The country’s top economic planner wants the industry to cut production of refined petroleum products and increase output of chemicals, according to its annual work report at the National People’s Congress on Wednesday. The order isn’t necessarily surprising — top refiner Sinopec Group said earlier in the week that consumption of both diesel and gasoline has peaked, leaving petrochemicals as the major growth driver for demand.