National Council for Childhood reviews plan to combat child labour    Indian tourist arrivals to Egypt jump 18.8% in H1-2025: ministry data    Price cuts underway across Egypt, says trade federation report    Egypt sets $12bn target for ready-to-wear garment exports by 2031    African agribusiness market expected to reach $1tr by 2030    Serbia's Vucic vows 'tough measures' against protesters after unrest    Zelenskyy seeks US security guarantees as Trump says he can 'end war now'    Israelis protest for hostage deal amid growing pressure on Netanyahu    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt delivers over 30 million health services through public hospitals in H1 2025    Egypt joins Geneva negotiations on Global Plastics Treaty, calls for urgent agreement    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Low oil prices lure Chinese refiners to top off supplies
Published in Amwal Al Ghad on 16 - 01 - 2024

Chinese refiners are actively scheduling crude oil cargoes for delivery in March and April to top off supplies, lock in cheap prices, and prepare for increased demand in the second half of 2024, according to Reuters.
Despite escalating tensions in the Middle East, global benchmark Brent futures have remained below $80 a barrel since December, rendering oil appealing.
Additionally, Beijing has imposed new quotas on refiners' ability to import crude and export fuel, thereby enabling them to increase their purchases and operations.
Although Asian refiners are scheduling seasonal maintenance for the second quarter, which normally lowers the region's oil demand, strong demand from the top crude importer in the world is supporting spot premiums for Middle Eastern crude exports.
"There will be a stock-building spree over the Q1-Q2, in preparation for the summer," said Kpler analyst Viktor Katona, repeating a trend seen by Chinese refiners in 2023.
"This has worked wonders for them last year and this year it seems to have an even better delineation between a weaker H1 and a stronger H2."
Last year, China purchased oil in unprecedented quantities, amassing about 1 billion barrels of crude oil in its possession. Late July saw refiners begin to reduce their stockpiles, which enabled China to ride off last year's price surge spurred by Saudi Arabia, the dominant member of OPEC, voluntarily cutting its output.
Following a surge in crude processing by refiners in the fourth quarter, data from analytical firms Vortexa and Kpler revealed that China's crude stockpiles dropped to 933–951 million barrels last week.
"Chinese refiners, led by Unipec, are moving quickly this month … They snap oil from all over the world, except for the U.S. due to high freight rates," said an oil trader with a Chinese refiner, referring to the trading arm of Asia's largest refiner Sinopec (600028.SS).
Another oil trader stated that Unipec ordered more Brazilian and Middle Eastern crude in January than it did in the previous two months, although traders believed it was difficult to assess its purchases.
Crude shipments are scheduled for delivery to China in March and April by dealers in January.
SINOPEC'S DECLINING INVENTORY
According to Emma Li, a Vortexa analyst, Sinopec's inventories dropped to less than 300 million barrels last week from an all-time high of over 350 million barrels in mid-June 2022.
"If the current rate of stock draws continues, Sinopec's inventories are projected to reach a two-year low in March," she stated.
According to multiple trading sources headquartered in Europe, Angola's February-loading cargoes have largely sold out as a result of a resurgence in sales to Asia, particularly to China.
The average spot premiums for the Middle Eastern oil benchmarks, Dubai, Oman, and Murban, increased to over $1 per barrel to Dubai quotations in December, from 38-month lows of less than 50 cents per barrel. This increase was supported by strong fears about supply interruption and trade disruption resulting from the intensifying Red Sea conflicts.
Following the issuance of additional quotas, state refiners in China have increased their output and exported refined products.
The Chinese oil dealer stated, "It's hard to tell the demand picture in the upcoming months, but it should be at least better than now."
"Current oil prices are still within our comfort zone, so refiners cannot go wrong to refill some stockpiles."


Clic here to read the story from its source.