Published on : Jun 23, 2014
In Asia, China is the second-largest importer of fuel oil. According to the figures from the General Administration of Customs in Beijing, China cut shipments previous month by almost sixty percent which was the lowest level in at least 11 years.
The decline of residual fuel in overseas purchases was noted at 1.31 million metric tons last month; it was down from 2.83 million tons compared to the previous year. During the first five months of 2014, the imports declined by 33 percent and were noted at 8.4 million tons.
Smaller and independent refineries in the eastern province of Shandong in China process fuel oil and crude material to produce diesel and gasoline. These plants known as teapot plants are responsible for more than 50 percent of the country’s total fuel oil purchases. According to a representative at the National Development and Reform Commission’s Energy Research Institute, these plants might get a grant for more crude import permissions this year.
An oil analyst stated that teapots are getting access to even more crude material. The analyst also stated that this is a trend in which fuel oil will be replaced even more by crude. It was forecasted by the same oil analyst that China’s fuel oil imports could decline further by a million tons in the month of June.
China has stopped purchases from Iran for almost four months, figures show. Singapore used to be the biggest supplies boasting 428,177 tons, which was followed by Venezuela which shipped around 304,220 tons, and South Korea in the third place supplied with 179,969 tons.