Market Brief

China's Teapot Refineries Look to Regain Lost Ground, an Industrial Info Market Brief

China's independent refineries, collectively called 'teapots,' may see the proverbial silver lining soon, thanks in part to an oil price war between Saudi Arabia and Russia following a recently deadlocked OPEC+ meeting earlier this month aimed to curb the world's oil production by 1.5 million barrels per day. These refineries, mainly located in the eastern province of Shandong, stand to benefit from the sub- $40 price per barrel being traded currently, and with the entry of Venezuela in the fray giving discounts of up to $23 per barrel, this could revitalize crude tenders in preparation to ramping up refining activities starting April, now that China's COVID-19 peak has been reached and appears to be over. Industrial Info is tracking both independent and state-owned oil refineries in China for any movements in this transition period of recovery from a tepid past two months. See map below for refinery locations.

Released Monday, March 16, 2020