China Eases Tight Diesel Market as Producers Boost Output: CCTV
(Bloomberg) -- China has “effectively eased” its tight diesel market after two top producers increased supply under government coordination, according to a report on Sunday from the nation’s state-run broadcaster CCTV.
China National Petroleum Corp. and China Petroleum & Chemical Corp., better known as Sinopec, have increased diesel output through a number of measures including ramping up processing rates, according to the CCTV report posted on the official Wechat account of National Development and Reform Commission.
“Sinopec will ensure its fuel stations won’t sell out or cut supplies,” said Ling Yiqun, the deputy general manager of Sinopec Group. Tight diesel supply in individual regions is short-term and the situation will improve soon, he said.
Long queues of vehicles were spotted recently snaking from some fuel stations as diesel volumes were rationed, sparking concern that China was poised for another energy crisis following coal and natural gas shortages.
CNPC increased crude imports, elevated run rates, adjusted product structures and halted fuel exports, resulting in diesel supply rising 23% in October from a year earlier, according to the CCTV report. Sinopec’s refineries have been at full capacity and output is expected to rise by as much as 50% in November and December, compared with the average over January through August.
©2021 Bloomberg L.P.