China’s VLSFO output fell in February - JLC

Chinese refiners produced 1.15 million mt of VLSFO in February, a 4.94% decrease year-on-year, according to market intelligence provider JLC.

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The country’s daily average VLSFO output in February fell by approximately 3.18% month-on-month to 41,071 mt. JLC attributed the decline to “poor production margins and PetroChina’s adjustments in its yields.”

PetroChina significantly reduced its VLSFO output in February after adjusting its refineries’ VLSFO yields. All of PetroChina’s refineries, except Gaofu refinery, lowered their VLSFO production to varying extents during the month. Sinopec’s VLSFO output also declined.

In contrast, CNOOC increased its VLSFO production, driven by a rise in output at its subsidiary Zhongjie Petrochemical. Meanwhile, Zhejiang Petroleum & Chemical (ZPC) and Sinochem did not produce any VLSFO in February, JLC stated.

By Tuhin Roy

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