EnergyScan

Chinese new quotas impacts physical markets

China’s 4th and last batch of crude imports is impacting far east crude grades, as ESPO cargoes traded 6$ above the Dubai benchmark yesterday for December loading. It is likely that most ESPO loadings will sail to China, as independent refiners are looking for light sweet distillate rich grades that require little natural gas consumption and yield a lot of diesel. The recent natural gas price spike, combined with a rally in middle distillate and heavy residuals against gasoline prices, has boosted the profitability of players with a simple refinery configuration. Asian refiners are able to easily turn a profit in the current margin environment, and we should see increased crude demand in the weeks to come, particularly in marginal markets such as West Africa. 

Energy scan oil news
Share this news :
Share on twitter
Share on linkedin
Share on email

You might also read :

ES-economy
February 1, 2022

The German 10-year rate rises above zero!

To the question we asked yesterday “Can the optimism be confirmed?”, the equity markets have given a positive answer, especially in the US. However, there…
ES-gas
June 25, 2021

No sign of abating in global gas prices

Despitesome intraday volatility, European gas prices continued to trend higher onThursday. A further rise in coal (new high for the API 2 Jul-21 contract) andEUA…
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]