China July crude throughput climbs on-year, but off record as glut weighs

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China July crude throughput climbs on-year, but off record as glut weighs
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China's July crude oil throughput rose 4% from a year earlier, official dat...

BEIJING/SINGAPORE - China’s July crude oil throughput rose 4% from a year earlier, official data showed on Wednesday, buoyed by improved refinery profit-margins and as new plants started production.

However, that was down over 5% from June’s record of 13.07 million bpd, amid mounting supplies from more efficient, giant producers. But Jin added that this recovery in profits could be temporary as China’s oil refining industry still has ample overcapacity and plentiful supply of refined oil products.

“China’s refined oil exports mainly flow to Southeast Asia. The launch of this new refinery will elbow out Chinese refined products and exacerbate the oil glut, which will further cut profit-margins at refineries,” said Jin.

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