Interesting update but I am not sure where the China Gasoline exports are going to go since US inventories bulging on both crude and gasoline/diesel fuels.
One thing for sure – the US refiners should be looking to bring ‘dumping charges” against China / other Government owned refineries since they are subsidizing the losses at these companies. Workers & Unions should be asking thier companies to start bringing the subject up!
As I have been reporting for some time now – China has given “one time” $Billlion subsidy to Sinopec/PetroChina since 2004 in order to keep domestic fuel prices below $0.90/gallon – this is way for them to shift some subsidy cost in down market to US (wont be profitable but wholesale price will likely be above their $0.90/gal). It must also be remembered that China is still keeping its $Yuan pegged below the US$ which also gives it a hidden export advantage over US products. We also shouldn’t forget that these countries were excluded by Kyoto for expensive environmental pollution monitoring / control investments like the US and are also free from potential Carbon Tax to minimize THEIR outputs.
And in case you didn’t make the connection – Trucks/barges/Logistics using $0.90/gal fuel cost are a huge artificial transportation subsidy for exports (just portion of this bankrupt the US steel industry until a too-late tariff leveled the field…..also greatly reduced imports).