Chinese newcomers staking a claim to global oil trading
Shanghai
CHINA is forecast to overtake the US as the world's biggest crude importer in 2016 and that's largely thanks to a group of buyers who weren't allowed to purchase foreign oil a year ago.
Record Chinese purchases have been a rare bright spot for global producers amid an oversupply that's driven prices to the lowest in more than 11 years. The good news for oil bulls is that imports by the world's largest commodities user are forecast to accelerate further this year, with the privately held refineries accounting for almost a fifth of the total, according to a Bloomberg survey of company officials.
China's government started granting import licences in 2015 to these independent refineries known as teapots as part of an effort to boost private investment in the energy industry. While the plants account for almost a third of the country's refining capacity, only state-owned giants such as PetroChina and China Petroleum & Chemical were previously permitted…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Japan’s Mitsui to develop Vietnam gas field for US$740 million
Trafigura pleads guilty, agrees to pay about US$127 million to settle US probe
Oil rises more than US$1 a barrel on tighter supply outlook
Freeport warns copper export ban could cost Indonesia US$2 billion in lost revenue
More than 20% of global oil refining capacity at risk: analysis
China lifts tariffs on Australian wine, ends three-year freeze in trade