{"id":1451183,"date":"2024-01-17T08:30:00","date_gmt":"2024-01-17T13:30:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1451183"},"modified":"2024-01-17T08:30:00","modified_gmt":"2024-01-17T13:30:00","slug":"they-are-snapping-oil-from-all-over-the-world-china-taking-advantage-of-recent-slide-in-oil-prices","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/they-are-snapping-oil-from-all-over-the-world-china-taking-advantage-of-recent-slide-in-oil-prices\/1451183\/","title":{"rendered":"“They Are Snapping Oil From All Over The World”: China Taking Advantage Of Recent Slide In Oil Prices"},"content":{"rendered":"

“They Are Snapping Oil From All Over The World”: China Taking Advantage Of Recent Slide In Oil Prices<\/span><\/p>\n

\n

By Tsvetana Paraskova of OilPrice.com<\/a><\/em><\/p>\n

Incentivized by below $80 a barrel Brent oil prices, Chinese refiners are looking to import more crude to build up stocks at relatively low prices early this year,<\/strong> expecting strong demand for fuels in the latter part of 2024, analysts and trading sources told Reuters<\/a>.<\/p>\n

<\/a><\/em><\/p>\n

International oil prices and China\u2019s crude import quota policies early this year have made refiners more certain of planning their purchases.<\/strong><\/p>\n

Brent Crude<\/a> has traded below $80 a barrel since early December, having dropped from a 2023 high of $95 at the end of September.<\/p>\n

In addition, China also issued early this month a\u00a0massive batch<\/a>\u00a0of crude oil import quotas to refiners for 2024, raising the allowances from early last year by around 60% and allocating full-year quotas to some. The high volumes of import allowances are expected to give independent Chinese refiners better visibility on their plans to purchase crude oil throughout 2024. \u00a0<\/p>\n

So now refiners are looking to stock up on below-$80 crude early in the year in anticipation of a surge in fuel demand in the second half.<\/p>\n

\u201cChinese refiners, led by Unipec, are moving quickly this month,\u201d an oil trader at a Chinese refiner told Reuters.<\/em><\/strong><\/p>\n

\u201cThey snap oil from all over the world, except for the U.S. due to high freight rates.\u201d<\/em><\/strong><\/p>\n

Higher rates have made U.S. crude more expensive<\/a> for Asian refiners compared to the crude grades from the Middle Eastern producers.<\/p>\n

So Asian buyers are turning to more Middle Eastern crude, especially after Saudi Arabia\u2014the world\u2019s top crude oil exporter\u2014slashed<\/a>\u00a0the price of its crude for Asia for February loading by $2 per barrel to a premium of $1.50 per barrel over the Oman\/Dubai prices, off which Middle Eastern producers price their crude loading for Asia. That\u2019s the lowest premium for Saudi crude over Oman\/Dubai\u00a0for 27 months<\/a>\u2014since November 2021.\u00a0<\/p>\n

It\u2019s too early to assess China\u2019s oil demand this year, after a mixed bag of economic data throughout last year. But higher Chinese crude oil imports in early 2024, when demand is typically weaker, could support international oil prices.<\/strong><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nWed, 01\/17\/2024 – 03:30<\/span><\/p>\n

\u200bRead More<\/a>\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

“They Are Snapping Oil From All Over The World”: China Taking Advantage Of Recent Slide In Oil Prices By Tsvetana Paraskova of OilPrice.com Incentivized by…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1451183","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1451183","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1451183"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1451183\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1451183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1451183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1451183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}