Beijing’s ban on the construction of new oil refineries could open a window for the GCC region’s refiners to export more products to China and other East Asian markets.
“Since the central committee a couple of months ago, a lot more private companies have earned the right to import products, it may be that they are importing finished products not crude,” says Peter Enzer, partner at The Consortium.
As American shale revitalises Western refining activity, there might be more spare capacity across the world, and the need to invest in new builds may be less immediate.
China’s crude imports increased in November, as the crude refining volumes increased to a record high level as refineries increased their stocks in a preparation for the Chinese New Year holiday in February. Regarding crude imports sources, in November all top suppliers to China maintained their position as seen in the previous month. Saudi Arabia, accounted for 8% of total Chinese imports.
