Thursday, July 5, 2012

China's Top Refineries Cut July Output on Weak Demand

Top Chinese refineries will cut crude oil processing runs in July, following gains in the previous two months, as sluggish demand, poor refining margins and high fuel stocks hurt operations, a Reuters poll showed.

The 12 plants, which make up nearly a third of the capacity in China, the world's No.2 oil consumer, are located mostly in coastal areas, and plan to process 2.88 million barrels per day (bpd) of crude oil this month, the poll showed.

The daily rate, which accounts for about 84 percent of their refining capacity, is expected to be 2 percent, or roughly 60,000 bpd, lower than the actual 2.94 million bpd in June.

Oil demand in China posted in April its first yearly fall in at least three years and edged up only 0.8 percent in May as economic growth slowed.

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