[eXpat]

China's Sinopec cuts off oil exports: state media

Chinese oil giant Sinopec has stopped exporting oil products to maintain domestic supplies amid disruption concerns caused by Middle East unrest and Japan's earthquake, a report said Wednesday.

The state-run Xinhua news agency did not say how long the suspension would last but it reported that the firm had said it also would take steps to step up output "to maintain domestic market supplies of refined oil products".

Sinopec would ensure supplies met the "basic needs" of the southern Chinese special regions of Hong Kong and Macao, but they also should expect an unspecified drop in supply, Xinhua quoted an unnamed company official as saying.

AFP was not immediately able to reach a Sinopec spokesman by phone for comment.

The report said Sinopec has raised output of refined oil products this year, with its first-quarter production reaching 31.55 million tonnes, an increase of 6.2 percent from the same period last year.

Sinopec last month said its 2010 net profit rose nearly 14 percent on higher oil prices and strong domestic demand for refined oil and chemical products.

It reported a net profit of 71.8 billion yuan ($11 billion).

http://www.energy-daily.com/reports/Chinas_Sinopec_cuts_off_oil_exports_state_media_999.html

Oil Crisis Just Got Real: Sinopec (Read China) Cuts Off Oil Exports

As if a dollar in freefall was not enough, surging oil is about to hit the turbo boost, decimating what is left of the US (and global) consumer. Xinhua, via Energy Daily, brings this stunner: " Chinese oil giant Sinopec has stopped exporting oil products to maintain domestic supplies amid disruption concerns caused by Middle East unrest and Japan's earthquake, a report said Wednesday. The state-run Xinhua news agency did not say how long the suspension would last but it reported that the firm had said it also would take steps to step up output "to maintain domestic market supplies of refined oil products". Oh but don't worry, those good Saudi folks are seeing a massive drop in demand... for their Kool aid perhaps. "Sinopec would ensure supplies met the "basic needs" of the southern Chinese special regions of Hong Kong and Macao, but they also should expect an unspecified drop in supply, Xinhua quoted an unnamed company official as saying." Now... does anyone remember the 1970s?

The report said Sinopec has raised output of refined oil products this year, with its first-quarter production reaching 31.55 million tonnes, an increase of 6.2 percent from the same period last year.

http://www.zerohedge.com/article/oil-crisis-just-got-real-sinpoec-cuts-oil-exports

[eXpat]

It is reported that Sinopec estimates it will have produced 10.54 million tonnes of refined oil in April, a 410,000 ton increase.

The parent group said Sinopec will continue production at full capacity in April.

The parent group released that Sinopec produced refined oil of 31.55 million tons in the first quarter up 6.2%YoY. Its crude oil processing volume increased 7.4%YoY to 54.72 million tonnes in the first quarter.

Sinopec said it has suspended refined oil exports but just Hong Kong and Macau to meet domestic demand.

http://www.steelguru.com/chinese_news/Sinopec_to_produce_10_million_tonnes_of_refined_oil_for_April/201426.html

[Pops]

But China's trucker demonstrations—triggered partly by rising costs for diesel—suggest that the effectiveness of those policies has limits. China's government controls the price of diesel and other fuels. While it has raised prices repeatedly, its increases have lagged the surge in crude oil: State-set prices for diesel and gasoline have risen about 10% this year, as crude has surged more than 20%. But with diesel in China at about 97 U.S. cents per liter now, according to Nomura Securities Co., Chinese drivers get a break because it is still about a tenth cheaper than in the U.S. market and less than half the European price.

http://online.wsj.com/article/SB1000142 ... lenews_wsj

[eXpat]

That´s right Pops, trackers have been protesting against fuel prices

Due to the rising cost of crude oil, the Chinese government has pushed up fuel prices several times already over the past year.

Lorry drivers are also irate over new fees being charged by private warehouse owners.

The price of diesel and petrol surged to an all-time high in April after Beijing hiked prices by up to 5.5 percent.

"Some people who don't have a lot of business cannot make money or will even lose money," a driver told the Associated Press.

Meanwhile, Beijing officials warn that inflation will probably remain steep for the rest of the year.

http://www.ibtimes.com/articles/136947/20110421/shanghai-lorry-drivers-strike-fuel-price-inflation.htm

[Pops]

Lots of headlines on this even though China has not been a net exporter for 20 years:

[rockdoc123]

Pops I believe they are referring to oil product exports, not crude oil.
What is humerous about this is just a couple of months ago China was concerned about not having enough internal demand for oil products.

Sinopec, China's biggest oil refiner, will subsidize refined oil products by its refineries starting in March in an effort to encourage oil product exports, a person from a Sinopec refinery told National Business Daily on Monday, saying the subsidy was 130 yuan ($19) per ton.
The subsidy will be paid by China International United Petroleum & Chemicals Co Ltd, a wholly-owned subsidiary of Sinopec, according to analyst Liao Kaishun from C1 Energy, an energy information website. Liao said C1 obtained the information from some costal refineries of Sinopec
This may be the first time Sinopec is using an internal subsidy to encourage oil product exports, Liao said, adding that the policy may last until the balance between domestic supply and demand for oil products is resumed.
Currently the domestic demand for oil products is sluggish whereas the stock is high. According to statistics, January's inventory of petroleum, diesel and kerosene by China's two oil giants, Petro China and Sinopec, increased 3.0 percent month-on-month while the oil products sales decreased by 6 percent

It should be interesting to see from Pup55 the effect this has on product imports over the next few weeks. The US refineries are at a very low period of activity so if they can't get products we might see some substantial drops in inventory levels.

[Pops]

Pops I believe they are referring to oil product exports, not crude oil.

Right you are doc, I'm trying to figure out why this is a big deal this time when I didn't hear anything about it when they did the same last November...

Sinopec suspends diesel exports amid domestic market shortage
(Xinhua)
Updated: 2010-11-20 14:21

China Petroleum and Chemical Corporation (Sinopec), China's largest oil refiner, said Friday it has suspended diesel exports to relieve shortages in the domestic market.

Sinopec also said it is seeking to import 200,000 tonnes of diesel.

PetroChina Co., China's largest oil producer, plans to import 200,000 tonnes of diesel. Some 35,000 tonnes of it has already arrived.

Insiders said China's diesel output in the first nine months soared, prompting the two oil giants to expand exports.
Sinopec attributed recent hikes in the domestic price of diesel to hoarding, seasonal factors, transport factors and energy-saving measures.

"The fundamental reason for the diesel shortage is the industry monopoly. Oil refiners are not keen to increase production because profit margins in the sector are relatively low," said Qi Fang, director of the Hebei Provincial Petroleum Industry Chamber of Commerce.

"The two oil giants operate on a planned-economy basis, resulting in an unbalanced supply-and-demand situation. Supply and demand can easily outstrip each other as government planning cannot keep pace with changes in the market," Qi said.

Statistics from the General Administration of Customs show China exported 360,000 tonnes of diesel in October - only slightly lower than the 368,100 tonnes it exported in September - even as diesel shortages worsened.

Diesel imports in October rose to 400,000 tonnes, up from 250,000 tonnes in September.

http://www.chinadaily.com.cn/china/2010 ... 582397.htm

[eastbay]

Lots of headlines on this even though China has not been a net exporter for 20 years:

Once a nation moves into the 'net importer' category, it never goes back to 'net exporter' status. I saw that article earlier and thought the same thing: it has very little meaning.

[rockdoc123]

I think that this is a great education about how everyone needs to be cognizant about the crap that comes out in the press. There are way too many people on this site that read something and immediately assume it is the gods only truth.
This is something that has always plagued me with the dialogue here on climate change. I have been trying for ever to get people to look at the alternative interpretations or the potential pitfalls in a particular interpretation. My background made me this way and I unfortunately can't help trying to correct bad assumptions.
Call me a denier or whatever, I actually don't care. I hope that eventually I will get people to think for themselves, something I was less successful than I would have liked to be when teaching in university.
Excuse my diatribe but this seemed like a good place to get this off my chest! mia culpa

[Pops]

You're right doc, when I first saw this rippling through the blogs my knee-jerk was to think it meant Something. Turns out it's just command economy style bumbling.

Figuring out the bias of whatever reporting is usually pretty easy, figuring out your own is tougher.

[Dreamtwister]

According to statistics, January's inventory of petroleum, diesel and kerosene by China's two oil giants, Petro China and Sinopec, increased 3.0 percent month-on-month while the oil products sales decreased by 6 percent

Whenever I see petroleum, diesel and kerosene, all I can think is fuel for motorcycles, tanks and jets. When I read the above paragraph, my first thought was "Why is China stockpiling motorcycle, tank and jet fuel?"