China’s state-owned crude runs decline from previous record highs – JLC

Chinese state-owned refiners reduced daily operating rates in October as maintenance work picked up pace and demand weakened in the country, market intelligence provider JLC reported.

PHOTO: An oil refinery. Getty Images

State-owned crude distillation units operated at an average capacity of 86.26% in October, “a drop of 2.89 percentage points from the record high in September,” JLC said. This comes as more units underwent maintenance work in October.

Chinese state-owned refiners Sinopec and PetroChina's combined refining capacity of 438,000 bbl/day was offline due to maintenance in October, up from 196,000 bbl/day in September, JLC reported.

Besides, state-owned oil companies face short quota on oil product exports this year, which also triggered a drop in crude runs, JLC said. About 4.91 million mt of refined oil products export quotas are left for the rest of the year, JLC’s data showed. This includes gasoline, diesel and jet fuel.

China has granted a total of 39.99 mln mt of oil product exports quotas so far this year.

Moreover, a decline in fuel oil demand noticed after China’s National Day holiday in early October was also factored in while lowering crude runs by refineries, JLC noted.

By Aparupa Mazumder 

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