Teapot Refineries Boost Chinaâ€™s as Leading Importer of Oil over U.S.
Published By : 29 May 2015 | Published By : QYRESEARCH
Teapots have given China the leading edge over U.S. as the largest importer of crude oil globally! China uses refiners named as teapots to process crude and these are set to increase since they constitute a third of China’s processing space.
These teapots are increasing as according to the new regulations there will be need for almost double amount of crude oil import. China wants to increase its stock piles of crude oil during the low price period and may surpass America as the biggest importer of crude oil. U.S. has been dependent on foreign oil since 1994. By the end of the year a global supply deficit will be created due to the flow of oil to Asia according to Sanford C. Bernstein Ltd.
Crude imports to China will outdo 2014 levels according to an SCI analyst, Gao Jian. The teapot refineries will boost China’s need for imported oil. By the fourth quarter of the year China’s record imports can create a global shortage of oil by 1.5 million barrels a day according to a researcher. This could increase prices per barrel to $80 of Brent crude. In May the oil prices have reduced by 6% and the European benchmark oil was at $62.58 on ICE Futures Europe Exchange the London based Exchange.
But China’ status of global largest oil importer may be outdone by U.S. during the forthcoming months as refineries may close down for maintenance. The teapot refineries located mostly in Shandong in the Eastern Province will possibly get to the extent of 30 million tons of imported oil approximately 600,000 barrels a day.
China’s independent refineries have in recent two years evolved to use crude oil from fuel oil as their feedstock for better returns and this development is expected to continue to expand according to Li Li, a strategy director of ICIS, China.