China’s domestic refineries processed 14.06 million b/d or 59.47 million mt of crude oil in August, edging down 0.2% month on month, extending a slight downtrend since hitting a record high in June, National Bureau of Statistics data released Sep. 15 showed.
Crude oil futures were rangebound during mid-morning trade in Asia Sept. 15 after OPEC lowered its oil demand forecast in a monthly report.
Meantime, world oil indexes dropped on Sep.14 amid concerns about a stalled global economic recovery and falling fuel demand.
ADNOC announced that it has successfully completed a placement to institutional investors of 1.25 billion shares in ADNOC Distribution.
GlobalData report: Feedstock optimisation and prospect of netting steady revenues enabling integrated refineries
The conventional refinery model of generating revenue by processing crude to produce transportation fuels is increasingly under threat from falling fuel demand.
Oil rose after economic data from China to the U.S. sparked optimism that an industrial recovery is underway, offsetting a bleak assessment of demand by another top energy organization.
More refinery closures are on the cards in Europe after Neste announced plans to potentially halt Naantali operations and transform it into a terminal.
Oil demand growth in China is currently the only certainty, with consumption in the country seen rising through the remainder of 2020 and recovering completely in 2021, but the rest of Asia will not see a full recovery to pre-crisis levels during 2021, OPEC Secretary General Mohammed Barkindo told S&P Global Platts.
China’s Shanghai Crude futures contract is changing from reflecting a CIF China crude price to becoming more of a “distribution center” price as the barrels delivered into the contract were increasingly sold on and shipped overseas, Wang Fenghai, CEO of the International Energy Exchange.
The Asian middle distillates market is expected to see some support in the week ahead as the increase in flight capacities by regional airlines is set to ignite some jet fuel demand, while interest to store surplus barrels on floating storage coupled with an uptick in cross-regional flows is poised to shore up sentiment in the gasoil arena.