China’s emergence as a major oil product exporter is depressing oil refining margins across Asia as favorable domestic fuel policies encourage Chinese refiners to keep output high and flood regional markets with surplus supplies. The surge in Chinese shipments has been felt the most in the diesel market, where benchmark Asian margins recently slumped to 6-year lows following an almost 80 percent jump in Chinese exports in 2015. The world’s No.2 diesel producer had until last year been only a modest exporter of the fuel, as the country’s large mining, power generation and trucking industries used up most of its diesel output. But as China’s industrial engine slowed, refinery run rates remained high to meet still strong demand for gasoline and jet fuel, used for transport. That led to a surplus of diesel that was steered on to regional markets with increased aggression over the course of 2015. Average […]