Oil refineries run below 70 percent
China’s oversupply of petroleum products will worsen, as its oil refineries are running below 70 percent capacity, said an industry insider. “Overcapacity has long plagued refineries, and the dipping of the global crude price has made overcapacity ever more prominent,” said Cui Guanglei, deputy head of the refinery division of Sinopec, China’s largest petroleum refinery. On the consumption side, China is using more gasoline and less diesel, Cui said. Sinopec saw overall petroleum sales rise 3.1 percent in the first half of the year, with gasoline up 12.5 percent but with diesel falling.