Oil / Commodities - Chinese oil buyers are spoilt for choice right now even as lockdowns hurt demand as they can opt for everything from discounted Russian crude and sanctioned Iranian oil to regularly-taken Middle Eastern barrels. While a wave of sweeping anti-virus curbs has put a dent in current consumption, China has an ample list of supplies that refiners can tap once usage rebounds. The complex picture shows that China has emerged as one of the beneficiaries of the conflict in Europe, which sparked a surge in crude prices in the highest since 2008 followed by a period of volatility. Beijing has stood by Moscow’s invasion of Ukraine, effectively clearing the way for refiners in the world’s largest oil importer to discreetly take Russian barrels that are being shunned by the U.S. and U.K. In addition, the EU is working on its own ban. Chinese oil consumption remains at the center of attention as renewed lockdowns raise questions over how much demand will drop and for how long. In May, Chinese state refiners are planning to process 4% less than April. The COVID situation is feeding into an increased level of uncertainty surrounding oil demand and the outlook for Chinese refinery runs. The prospect of an EU ban on Russian oil will inevitably turn some attention onto China, whether they can pick up more barrels once their demand woes are over.
Newsletter - May 12, 2022
Newsletter - May 12, 2022
Newsletter - May 12, 2022
Oil / Commodities - Chinese oil buyers are spoilt for choice right now even as lockdowns hurt demand as they can opt for everything from discounted Russian crude and sanctioned Iranian oil to regularly-taken Middle Eastern barrels. While a wave of sweeping anti-virus curbs has put a dent in current consumption, China has an ample list of supplies that refiners can tap once usage rebounds. The complex picture shows that China has emerged as one of the beneficiaries of the conflict in Europe, which sparked a surge in crude prices in the highest since 2008 followed by a period of volatility. Beijing has stood by Moscow’s invasion of Ukraine, effectively clearing the way for refiners in the world’s largest oil importer to discreetly take Russian barrels that are being shunned by the U.S. and U.K. In addition, the EU is working on its own ban. Chinese oil consumption remains at the center of attention as renewed lockdowns raise questions over how much demand will drop and for how long. In May, Chinese state refiners are planning to process 4% less than April. The COVID situation is feeding into an increased level of uncertainty surrounding oil demand and the outlook for Chinese refinery runs. The prospect of an EU ban on Russian oil will inevitably turn some attention onto China, whether they can pick up more barrels once their demand woes are over.