China Slashes Crude Oil Refinery Output on Sluggish Prices
$OIL, $SHI, $PTR
China’s Crude Oil output fell 9.9% Y-Y in August, the biggest monthly fall since Y 2003 as refineries slashed production amid sluggish global Crude Oil prices, data from the National Bureau of Statistics showed Monday.
Imports have trended upward after private refineries were given permission to import Crude Oil last year.
In the 1st 8 months, China’s Crude Oil imports rose 13.5% compared with the same frame last year, while refined Oil output gained 2.1%.
China’s Oil giants plan to reduce output due to flagging prices.
Sinopec (NYSE:SHI), the largest Crude Oil refiner in China, and PetroChina (NYSE:PTR), the largest Crude Oil and Nat Gas producer, have both lowered their production targets for Y 2016.
Sunday, the National Development and Reform Commission (NDRC) decided to lower retail prices of gasoline and diesel, tracking subdued global Crude Oil prices due to market worries about an agreement on freezing production, rising yields in countries including Iran and weak US demand.
“The prices will likely remain low in the short term, fluctuating between US$40 to 50 per barrel,” said NDRC researcher Zhao Gongzheng.
|HeffX-LTN Analysis for OIL:||Overall||Short||Intermediate||Long|
|Neutral (-0.17)||Neutral (-0.12)||Neutral (-0.10)||Bearish (-0.28)|
|NYSE:SHI||50.87||20 September 2016||0.48||50.79||51.12||50.79||7,540|
|HeffX-LTN Analysis for SHI:||Overall||Short||Intermediate||Long|
|Neutral (0.12)||Bearish (-0.26)||Bullish (0.38)||Bullish (0.25)|
|NYSE:PTR||64.06||20 September 2016||-0.16||64.29||64.64||63.93||82,737|
|HeffX-LTN Analysis for PTR:||Overall||Short||Intermediate||Long|
|Bearish (-0.39)||Very Bearish (-0.50)||Bearish (-0.44)||Neutral (-0.22)|