China demands private refineries maintain production "at all costs", according to Bloomberg
Chinese authorities have asked the country's private refineries to maintain their production levels at the same levels as throughout 2025 "at all costs" due to the impact of the Middle East war on global oil trade, reported Bloomberg. According to that medium, citing anonymous sources, the National Development and Reform Commission (NDRC, China's main economic planning body) met with executives from these companies to convey that the priority was to ensure domestic fuel supply, even if it meant economic losses.
TL;DR
- China's government is pressuring private refineries to maintain production levels through 2025.
- This directive is a response to the impact of the Middle East war on global oil trade.
- Refineries that reduce production risk having their oil import quotas cut.
- Independent refineries ('teapots') are particularly affected by changes in oil discounts from Iran and Russia.
- Recent data shows 'teapots' have reduced utilization rates to their lowest levels since August of the previous year.
- China has experienced a recent increase in fuel prices, prompting regulatory intervention.