NA­TION ‘TO BE NET EX­PORTER’ OF OIL PROD­UCTS

China Daily (Canada) - - BUSINESS -

China is likely to be­come a net ex­porter of oil prod­ucts this year as do­mes­tic re­fin­ers con­tinue to re­quest ex­port quo­tas, said in­ter­na­tional com­modi­ties data provider Platts.

In an un­prece­dented de­vel­op­ment, China be­came­ex­actly bal­anced in oil prod­ucts trade for the first 10 months of this year, with im­ports and ex­ports stay­ing at ex­actly the same vol­ume, Platts said on Wed­nes­day.

“There ap­pears to be more room for ex­ports to growright un­til the end of the year,” said Song Yan­ling, a se­nior an­a­lyst with Platts China.

Re­fined oil prod­uct im­ports tum­bled 22.2 per­cent year-on-year to 2.28 mil­lion metric tons in Oc­to­ber, while ex­ports soared 30.3 per­cent to 3.14 mil­lion tons, ac­cord­ing to the Gen­eral Ad­min­is­tra­tion of Cus­toms.

As a re­sult, Chi­nawas a net ex­porter of oil prod­ucts in­Oc­to­ber, with vol­ume hit­ting a record high of 860,000 tons.

Diesel ex­ports soared 22.4 per­cent to 300,000 tons in­Oc­to­ber while do­mes­tic pro­duc­tion­was up 5.6 per­cent to 15.36 mil­lion tons.

De­mand for diesel in Oc­to­ber climbed 5.3 per­cent to 15.06 mil­lion tons— the fastest rate since Septem­ber 2012.

Gaso­line ex­ports reached a four-year high of 670,000 tons in­Oc­to­ber, while do­mes­tic out­put soared 14.9 per­cent to 9.54 mil­lion tons.

Li Li, re­search and strat­egy di­rec­tor at con­sul­tancy ICIS C1 En­ergy, said the rea­son for the drop­was that do­mes­tic re­finer­ies tend to re­duce the use of fuel oil as a raw­ma­te­rial when they have more choices in the mar­ket.

“It is cer­tain that China will ex­port more oil prod­ucts as do­mes­tic ca­pac­ity con­tin­ues to grow,” she said.

CHEN WEIFENG / FOR CHINA DAILY

An oil tanker gets ready to un­load cargo at the port in Rizhao, Shan­dong prov­ince. An ex­pert said China should take ad­van­tage of fall­ing crude prices to build up its strate­gic oil re­serves.

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