Chinese refining rates have dropped significantly since last May despite soaring fuel prices in the region. Officially, China is limiting the export quotas to discourage refiners from producing excessive amounts of fuels. It seems that China is prioritizing its long-term emission reduction targets over additional fuel production that would alleviate the squeeze across the region. Fuel prices in Asia are going through the roof as demand for travel bounced back from the pandemic depression. Yet refining rates have not bounced back in sync, especially in China. And it might be deliberate. Reuters’ Clyde Russell wrote in a recent column that China’s refined oil product exports this May, at 3.27 million tons, were as much as 40 percent lower than its May 2021 fuel exports. The refined oil product exports for the first five months of the year were down 38.5 percent from a year ago. Given that the demand […]