China Lets Independent Refiners Cut Output to 80% as Losses Hit 752 Yuan a Ton

3 articles · Updated · Reuters · Jun 2

Some Shandong independent refiners were told they can lower June processing to no less than 80% of last year’s monthly average, easing an earlier order to maintain output near the past two years’ level.
The shift follows mounting losses as capped domestic fuel prices collided with higher crude costs after the Iran war closed the Strait of Hormuz; average losses reached 752 yuan per ton in May, up from 202 yuan in April.
Shandong teapots were already running at 53.39% in May, down 1.94 percentage points from April, even as Beijing had pressed them to keep fuel flowing during the supply shock.
That burden is harder to justify because gasoline and diesel are now plentiful, while transport electrification and export curbs have weakened domestic fuel demand.

Sources

Left33%

Center33%

Right33%

Beyond oil, the Hormuz crisis is crippling other vital supply chains. Which critical global industry will be the next to collapse?

With China acting as oil's 'central bank', when will its reserves run dry, triggering the next global price shock?