September 5, 2007 at 1:55 am #3956
China’s gasoline exports will continue to plummet in September – analyst
Hong Kong. August 31. INTERFAX-CHINA – China’s gasoline exports will continue to plummet in September due in part to expectations from the Zhanjiang Dongxing refinery, an export-oriented China Petroleum & Chemical Corp. (Sinopec) refinery, that it will not record any exports during the month, an oil product analyst said today. No further details were disclosed by Zhou Fenting, an oil product analyst with energy pricing portal oilgas.com.cn. Oil traders interpreted the move was not driven by real market conditions, but by the intention of major refiners to demonstrate adherence to the circular released by the National Development and Reform Commission (NDRC) earlier in the month, which ordered companies to export fewer oil products, according to the state-run Shanghai Securities Journal. The report stated that PetroChina and Sinopec may even suspend exports for the entire month, leaving only export-focused West Pacific PetroChemical Corp. to export gasoline during September. China exported 82.8 percent more gasoline in the first half of this year than the same period a year earlier. The higher amount of exports were driven by robust export volumes in June, which were a result of peak demand on the international market and much higher international prices compared with domestic markets, according to China Customs data. The Chinese government kept a tight grip on domestic fuel prices in order to protect price-sensitive industries such as agriculture and fishing, as well as to rein in the already high inflation rate. The inflation rate is figured according to the consumer price index, which also takes fuel prices into account. The country’s fourfold increase in gasoline exports in June, which resulted in severe shortfalls in fuel supplies, particularly in southern China, prompted the government to require China’s major oil refiners to increase crude oil processing, cut the time used for performing maintenance operations during the peak consumption season and strictly control oil product exports. China’s oil majors, which are monopolized state-owned companies, are often accused of not doing enough to contribute to society after raking in huge profits. The oil supply situation in southern China has improved of late, as fewer southern private oil companies seek fuel from the country’s small northern refineries. In addition to increased output from the major oil refineries as required by the central government, the falling international price of crude oil, combined with high domestic inflation rates have made a domestic fuel price rise in the near future unlikely, which in turn has helped release some inventory that was being hoarded for future sales, according to analysts -JY
September 5, 2007 at 1:58 am #7302
Good article warning China gasoline exports will drop drastically in September and ….. Good reminder that Chinese Government not Free Trade is driving force in that country, Industry & Government walk arm in arm unlike the US/Western World, and that protectionism has the over-ride slot. Not exactly what was promised to get WTO status??
Only thing that China seems to share with the WTO countries in Oil industry is the feeling that : China’s oil majors, which are monopolized state-owned companies, are often accused of not doing enough to contribute to society after raking in huge profits.
And that song never seems to change no matter what key – or country the song is sang.
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