China is asking state refineries to stop exporting gasoline and diesel
Chinese authorities have asked the country's state-owned refineries to consider stopping exports of diesel and gasoline next April due to growing concerns about oil supply after Russia invaded Ukraine, R reported. euters Wednesday.
"This is to prevent a shortage as independent refineries are under great pressure to reduce productivity in the face of soaring crude oil prices," a source familiar with talks with state refineries told Reuters. Independent refineries work according to the market and the risk is that they offer too little diesel and gasoline, putting strain on the Chinese domestic market.
China, the world's largest importer of crude oil, has not condemned the Russian invasion of Ukraine and is likely the country that will continue to trade with Russia regardless of the sanctions Western allies decide to impose in the future. However, China is also concerned about its energy security, considering the skyrocketing prices of energy raw materials, of which it is a major importer. The prices we see are international, they affect everyone, including Beijing.
China plans to increase its production of crude oil, natural gas and coal, increase reserves of energy commodities and keep imports stable to ensure its energy security amid soaring commodity prices, he said at the outset. this week's economic planning agency
"Since the beginning of this year, under the combined influence of multiple factors such as the Covid-19 pandemic, the change in monetary policy of the main economies and above all the escalation of geopolitical conflicts, the international situation of commodity prices it has become more serious and complex and uncertain, ”Lian Weiliang, deputy director of the National Development and Reform Commission (NDRC), said at a press conference hosted by the South China Morning Post.
The upward pressure on energy and agricultural commodity prices "represents a new challenge to ensure domestic supply and price stability," Lian said.
Planning agency NDRC said over the weekend that the country will increase coal production and reserves, develop "major oil reserve projects" and also increase oil reserves, according to Reuters. However, this will free up some of the resources that are currently being purchased abroad.
At this point, energy factors take a back seat to the country's stability and energy security. The decision to stop exports will lead to further tensions on world fuel markets.
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The article China asks state refineries to stop exporting gasoline and diesel comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-cina-chiede-alle-raffinerie-statali-di-non-esportare-piu-benzina-e-gasolio/ on Wed, 09 Mar 2022 17:19:08 +0000.