China Ready to Pick Up Slack With Global Oil Demand Wavering
- Gasoline, diesel inventories are down sharply since September
- Floor-price mechanism, more teapot quota to benefit refiners
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As a rampant coronavirus ravages Europe and the U.S. and raises the risk of more lockdown measures, a range of indicators suggest China can cushion oil markets from the worst of the potential demand destruction.
Stockpiles of crude and particularly fuels such as diesel and gasoline in the world’s biggest oil importer have shrunk over the past couple of months as economic activity exceeded expectations. Against this backdrop, one of China’s biggest state-owned refiners said it will keep crude throughput at its plants steady for the rest of the year.