EnergyScan

China’s energy crisis in focus

Crude prices remained supported, with ICE Brent futures above 83 $/b for the Dec-21 delivery. The energy crisis in China is likely to prompt further imports from domestic refiners to rely increasingly on locally sourced energy consumption from refinery units through LPG burn, as Chinese coal futures are soaring markedly above last week’s prices due to flooded mines in a time of already low coal stocks. Yet, in September, crude oil imports remained poor, at 41.05 Mt, or 10 mb/d. This continues to be the weak link of the crude oil market, with independent refiners’ limited ability to import, and state-owned refineries cutting run rates due to regional lockdowns in August and September.

The decline in Japanese crude inventories halted last week, as stockpiles rose by 2.4 mb. Yet, middle distillate stocks dropped, ahead of a potentially tight winter, with kerosene being the only product building seasonally, as expected. Physical crude markets continue to trade regionally, with the Far East Sokol crude trading at a record premium, bought by Mercuria. West African markets remained lacklustre amid poor buying pressure from Asia and Europe.

Japanese commercial inventories

Energyscan oil news
Share this news :
Share on twitter
Share on linkedin
Share on email

You might also read :

ES-oil
August 30, 2021

Ida’s aftermath

The oil market was focused on the Ida hurricane making landfall yesterday, strengthening to a Category 4 hurricane with winds reaching 240 km/h in key areas…
ES-oil
July 12, 2021

broad-based inventory declines

Last week’s crude oil price decline was likely caused by a broad selloff in Brent and WTI futures, as total open interest declined significantly. Looking…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet?  Sign up here!

[booked-calendar]