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October 2018
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Friday, 12 October 2018 17:00

China swoops in on Canadian oil

China swoops in on Canadian oil

Chinese oil buyers are making a beeline for a bargain across the Pacific. With Canadian oil over 60 percent cheaper than U.S. benchmark West Texas Intermediate and global marker Brent, China’s refiners are being lured to the heavy, sludgy crude. That’s because -- apart from being a source of fuel -- it’s rich in bitumen, a black residue used to build everything from roads to runways and roofs, Caspian Energy News (www.caspianenergy.net) reports with reference to Bloomberg.

China’s demand for the material is expected to increase as President Xi Jinping’s government focuses on infrastructure construction in a bid to reform the world’s second-biggest economy.

China bought 1.58 million barrels of Canadian crude for loading in September, almost 50 percent higher than the 1.05 million barrels in April, data from cargo-tracking and intelligence company Kpler show. State-run refiner Cnooc Ltd. has chartered a tanker, Nordtulip, to load oil from Vancouver in October, according to shipping fixtures.

With Chinese infrastructure spending in the second half of 2018 seen accelerating at five times the pace in the first six months of the year, expectations that bitumen demand will increase have boosted prices of the material to a record in the nation. That means refiners producing the residue from relatively cheap Canadian oil would enjoy better profit margins.

More details: https://www.bloomberg.com/news/articles/2018-10-11/china-swoops-in-on-canada-oil-that-s-50-cheaper-than-u-s-crude

Person in charge of the newsline: Olga Nagiyeva 

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