China selling off oil it no longer needs

The pace at which China exports the fuel it doesn’t want is set to jump by more than four times in 2018, according to the nation’s biggest energy producer.

That’s a harbinger of bad news for processors in the rest of Asia — from South Korea to Japan and India — who now have to contend with higher crude prices as well as the threat of the flood dragging down refining margins. Government-issued quotas to sell oil products abroad may also expand this year in order to ease a large supply glut in the domestic market, an analyst at China National Petroleum Corp. said on Tuesday.

China’s net oil-product exports — a measure that strips out imports — may climb about 31 percent to 46.8 million metric tons this year, CNPC said in its annual report released in Beijing. Shipments rose about 7 percent in 2017.

In particular, exports of diesel — also known as gasoil — are expected to soar 47 percent to 23.8 million tons in 2018 from a year earlier, according to the CNPC report.

Yup. Countries smart enough to walk away from fossil fuels, pollution, economists and politicians with fossilized brains – end up with “problems” like selling off the excess crap they no longer need or want. One of the early results from switching to renewables like wind and solar-generated electricity.

3 thoughts on “China selling off oil it no longer needs

  1. Gweilo says:

    “China Reports Its Fastest Economic Growth In 7 Years” (NPR) https://www.npr.org/sections/thetwo-way/2018/01/18/578814234/china-reports-its-fastest-economic-growth-in-7-years
    “Commentary: China’s economy could hit its sweet spot in 2018” (Xinhua) https://uk.reuters.com/article/china-economy-output-steel/update-2-china-govt-curbs-drop-avg-daily-steel-output-to-12-mth-low-in-dec-idUKL3N1PC2TV “The old economy — heavy industries and property sectors are slowing. The new economy — services and part of the manufacturing sector such as high tech are gaining strength. …China has held firm that it will target high quality growth over high speed growth for structural reasons.”
    Also: “China’s average daily steel output fell 1.9 percent in December from the previous month, official data showed on Thursday, touching the lowest level in a year as government-imposed production curbs deepened. https://uk.reuters.com/article/china-economy-output-steel/update-2-china-govt-curbs-drop-avg-daily-steel-output-to-12-mth-low-in-dec-idUKL3N1PC2TV Steel mills have been cutting production since mid-November as part of government efforts to fend off smog in winter months. China closed up to an estimated 140 million tonnes per year of illegal induction furnace capacity in the first half of 2017, part of Beijing’s efforts to tackle overcapacity.

  2. Will B. says:

    HOUSTON (AP) — A global energy watchdog says booming production in the United States will meet 80 percent global growth in demand for oil over the next five years.
    The International Energy Agency believes slow growth from OPEC will be offset by oilfields in the U.S.
    The group, based in Paris, issued its annual oil market report on Monday. The resurgence in U.S. production is the most prominent change since the group’s last forecast. https://www.mysanantonio.com/news/texas/article/US-oil-expected-to-meet-most-of-world-s-growth-in-12728069.php

  3. Yü-men says:

    It’s taken a quarter of a century, but China finally has its own oil futures. At 9 a.m. local time on Monday, crude contracts began trading on the Shanghai International Energy Exchange. Futures for September settlement opened at 440 yuan a barrel, up from a reference price of 416 yuan. The world’s biggest oil buyer is offering yuan-denominated futures that foreigners can buy and sell — a first in Chinese commodities. Among the most intriguing questions is whether the traditional benchmarks of Brent crude in London and West Texas Intermediate in New York will face a serious challenger. Here are some of the other key questions… https://www.bloomberg.com/news/articles/2018-03-25/china-s-oil-futures-are-finally-here-what-you-need-to-know
    See also “China’s Oil Futures Surge on First Trading Day” https://blogs.wsj.com/moneybeat/2018/03/26/energy-journal-chinas-oil-futures-surge-on-first-trading-day/

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