Asia’s largest refining company, Sinopec, is cutting oil processing this month at about 12%. This is due to the expectation that haunts the oil market that coronavirus will have a major impact on demand for fuel and its distribution.
According to Reuters, sources said the company has given in to refineries different targets of cuts based on local demand for fuels and logistics. In addition, Sinopec is cutting the processing at about 600,000 barrels per day (bpd), while other independent refineries have reduced operations to 30% to 50% of the below their abilities.
“The company is closely monitoring the changes in the market situation and will optimise operative rates and the production mix with market demand,” the state said. The director of consulting Firm SIA Energy, china-focused Seng Yick Tee, also commented that cuts in refineries can lead the producing countries led by the Organization of Petroleum Exporters (OPEC) to assess the extension or expansion of cuts production.ACESSE AS REDES DA PANORAMA OFFSHORE: