Chinese state-run gasoline refineries cut run rates to 83% of capacity in November in a bid to tackle its oversupply issue. This year, however, China's apparent gasoline demand is likely to drop to 3.4 million b/d in Q4 from 3.5 million b/d in Q3, according to Platts China Oil Analytics. A combination of high domestic production, atypically low winter demand, and too few export opportunities, has led to large gasoline stockpiles, prompting refiners to cut runs at a time when they would usually be increased. The drop in oil prices is also hurting the U.S. economy, which relies heavily on imported oil.
Chinese state-run gasoline refineries cut run rates to 83% of capacity in November in a bid to tackle its oversupply issue. A combination of high domestic production, atypically low winter demand, and too few export opportunities, has led to large gasoline stockpiles, prompting refiners to cut runs at a time when they would usually be increased. The drop in oil prices is also hurting the U.S. economy, which relies heavily on imported oil.