China’s Oil Teapots Cut Runs to Pandemic Levels After Sanctions
Dear Readers:
We are reposting this item from Friday’s Daily Energy Report after correcting a typo. We also posted the related news at the end. Thanks to one of our readers who pointed out the typo. Please accept our apologies.
DER Team
The News: China’s Oil Teapots Cut Runs to Pandemic Levels After Sanctions
Summary
Private “teapot” oil refiners in China's Shandong province have reduced their operating rates to 44% due to US sanctions on Russian oil. This reduction in supply, coupled with China's weak economic recovery and low fuel demand, has led to a sharp decline in refining margins, turning profits into losses. The situation has also driven up the cost of alternative crude from places like Oman and Abu Dhabi and increased freight rates.