China’s Late Buying Spree Gives Some Relief to Global Oil Market

BC-China’s-Late-Buying-Spree-Gives-Some-Relief-to-Global-Oil-Market , Bloomberg News (Bloomberg) — China has snapped up millions of oil barrels in a late buying spree as refiners plan to boost fuel exports through the end of the year. Some of China’s biggest buyers have purchased at least 10 million barrels since late last week from the Middle East, West Africa and Brazil, according to traders participating in the market. The world’s top oil importer was initially subdued during the latest trading cycle, but the flurry of buying signals a ramp-up of Chinese consumption and a potential boost to global demand. Beijing has encouraged refiners to ship as much fuel as possible by the end of the year after recently allocating a new export quota for oil products including diesel and gasoline. Refinery operating rates may climb by 4-5% in the final quarter from the previous three months, Xia Wenhong, an analyst with industry consultant OilChem, said during a webinar last week. Strong seasonal demand for diesel has also boosted overall profit margins for processors, another factor supporting the increase in refining rates, said traders who take part in the Chinese market. The trading arms of top state-owned oil companies China National Petroleum Corp. (PetroChina), China […]

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