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China's 'teapots' eat into crude glut - but build Asian fuel surplus

Tweaks in pricing scheme lock up margin when oil price falls under US$40 a barrel

STOCKPILING: A crude oil importing port in Qingdao. To capture healthy margins and replenish inventories ahead of the Chinese New Year break that starts on Feb 8, teapots have cranked up output to near full-tilt, sources said.


NEWLY licensed Chinese oil importers are taking advantage of low crude prices and healthy domestic product margins, snapping up hundreds of thousands of barrels a day of a global surplus but also adding to China's swelling fuel exports.

Armed with quotas that could make...