Chinese refineries buy oil again

After weeks of production cuts, postponement of deadlines and cancellations of cargo due to the increasing impact of coronavirus on demand for Chinese oil, companies such as Shandong Shouguang Luqing Petrochemical, Shandong Huifeng Petroleum Chemical and Sinochem Hongrun Petrochemical returned to the market on a large scale.

The segment, until then, was avoiding buying oil and also reduced processing rates. According to Bloomberg, this wave of purchases may be a sign that these companies are preparing for a possible recovery in demand, taking advantage of falling oil prices to buy cheap.

Trading still doesn’t know if purchases signal this picture, as many refineries in the country still operate at reduced operating rates and travel restrictions decrease fuel consumption.

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