2024.11.08

China’s oil imports drop amid refinery shutdown and reduced independent refinery demand

China's crude oil imports declined in October, dropping 9% year-on-year due to weaker demand and the closure of a major PetroChina refinery unit. Imports totaled 44.7 million metric tons, or about 10.53 million barrels per day (bpd), down from 11.07 million bpd in September. PetroChina’s Dalian refinery shut a 90,000-bpd unit as part of a phased plant closure, while Sinochem’s Shandong-based plants remained idle following bankruptcy rulings. Smaller independent refineries also reduced operations due to low margins. Meanwhile, China’s natural gas imports rose 20% year-on-year, with refined oil product exports down 23% compared to the previous year.

[SLOW] https://slowspace.io/  Trade Flow China seaborne crude imports by destination ports

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China's Iranian oil supply at risk as Trump set to ramp up sanctions, pressuring refining sector

China could face disruptions in its supply of discounted Iranian crude, which accounts for about 13% of its total oil imports, if Donald Trump reimposes stricter sanctions on Tehran following his potential return to the U.S. presidency. This "maximum pressure policy" would target Iran’s oil industry, raising costs for China’s refining sector, particularly for independent “teapot” refineries. These refiners, which have benefited from purchasing cheap Iranian oil, may struggle with tighter sanctions and weaker margins. Despite these sanctions, China’s imports of Iranian oil have increased by 30% this year, though "dark fleet" activity and shipping may face additional scrutiny.

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[SLOW] Oil Market _ Benchmarks

Vitol CEO predicts stable $70-$80 oil in 2025

Vitol CEO Russell Hardy projects that oil prices will stay between $70 and $80 per barrel in 2025, consistent with 2024 levels, though supply uncertainties due to geopolitical risks could impact this range. Concerns about a potential OPEC+ supply increase and weaker Chinese demand are capping prices, but geopolitical factors, especially involving Middle East tensions, Iran, and Venezuela under a possible Trump administration, could shift the balance. China’s demand is expected to grow by 700,000 barrels per day in 2025, though not as strongly as recent post-pandemic years. Meanwhile, Hengli Petrochemical's CEO Janet Kong notes that while global spare capacity remains high, weak fuel demand and low Chinese refining utilization rates may keep refining margins depressed.

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[SLOW] Chemical Tanker Fleet Study _ Fuel type of large chemical tanker by built year

Xingtong Shipping invests $195m in six methanol-fuelled chemical tankers to boost global market share

Shanghai-listed Xingtong Shipping is investing approximately $195.5 million in six methanol dual-fuel chemical tankers to expand its fleet and bolster its presence in the international market. The order includes two larger 25,900-dwt vessels and four 13,000-dwt vessels. While the order has board approval, the shipyard has not been selected, and shareholder approval is pending. Xingtong aims to leverage favorable supply and demand dynamics in the chemical shipping market and enhance its fleet's capacity for transporting hazardous liquids. The company’s fleet, which currently includes 43 ships, expanded significantly in 2022 when it acquired a majority stake in the CSIC-IMC Shipping joint venture, increasing its influence in the chemical tanker sector.

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[SLOW] https://slowspace.io/  Folder Filters _ Euronav

CMB.Tech secures seven-year charter with Ultratank for new chemical tanker, eyes further backlog expansion

CMB.Tech, the Saverys family-owned company previously known as Euronav, has signed a seven-year charter deal with Chile’s Ultratank for its latest chemical tanker, a 26,000-dwt vessel. This tanker, part of an eight-ship series, is one of several newbuilds aimed at bolstering CMB.Tech’s fleet, especially in a market seeing increasing rates for chemical tankers. CEO Alexander Saverys highlighted that the company aims to build its contract backlog, though recent delays in project confirmations have slowed progress. However, he expects the backlog to grow in the coming months. CMB.Tech is also in discussions with ExxonMobil for ammonia-ready tankers, with potential newbuilding orders under consideration. These vessels, if contracted, would serve routes between the UK and the ARA region.

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[SLOW] https://slowspace.io/ Flow Port Le Havre, France

France’s Le Havre Port to host hydrogen, lithium, and renewable fuel projects in 2.7 billion euro green investment

France has chosen three major industrial projects to be developed at Le Havre port as part of its "France 2030" initiative to attract green investment. The selected projects include a hydrogen import terminal by Air Products, a lithium refining plant by Livista, and hydrogen and methanol production facilities by Qair. Together, these projects represent a combined investment of up to 2.7 billion euros and are expected to create around 720 jobs. The companies will benefit from fast-tracked approvals, grid connections, and funding support for initial studies. Air Products' terminal, costing 1.1 billion euros, will supply renewable hydrogen to TotalEnergies, while Livista’s lithium refinery and Qair’s renewable fuels facility are estimated at 1.2 billion and 500 million euros, respectively.

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