China orders independent refiners to maintain fuel output
China's state planner told independent refiners to maintain output to ensure fuel supply. Failure to comply may result in reduced crude oil import quotas.
The state planning agency of China has issued a directive to independent refiners, instructing them to maintain crude processing rates at or above their average levels from the past two years. This move is intended to safeguard the domestic fuel supply as regional geopolitical tensions threaten global energy markets.
According to sources familiar with the matter, the National Development and Reform Commission (NDRC) delivered this message during a meeting this week. The directive comes at a time when smaller refiners, often referred to as "teapots," were expected to scale back operations. These anticipated cuts were driven by a significant rally in global benchmarks, including Brent Crude Oil and West Texas Oil, following the escalation of conflict involving the United States, Israel, and Iran.
