According to S&P Global Platts Analytics and other sources. Chinese refineries have slashed runs by about 1.5MM b/d over the past two weeks as the coronavirus negatively weighed on oil consumption. This reduction in crude runs in the country is leading crude producers to reroute volumes destined for China elsewhere. Platts reports that "30-60MM bbl of oil already purchased and on its way to China will need to be either resold and/or kept in storage for future use." Refinitiv data shows a number of very large crude carriers (VLCCs) are currently stuck at China's top crude import terminal of Qingdao unable to unload due to these run cuts. Cargoes currently on their way to Qingdao are being rerouted to other destinations in Asia including Malaysia, Singapore, and South Korea and also to Europe. ChemChina has diverted some crude cargoes to floating storage near Malaysia, a source with direct knowledge of tire matter told Reuters. A Chinese refinery source added, "We are cutting runs, but we still have (crude) cargoes on the way."
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