China Slashes Crude Oil Refinery Output on Sluggish Prices

China Slashes Crude Oil Refinery Output on Sluggish Prices

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)
Symbol Last Trade Date Change Open High Low Volume
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)
Symbol Last Trade Date Change Open High Low Volume
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)

Stay tuned…

 

 

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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