Economy
China to Export Petrol to Nigeria, Mexico
- China to Export Petrol to Nigeria, Mexico
The world’s largest importer of crude oil will start exporting petrol to Nigeria and Mexico as local demand declined amid falling consuming spending.
Refineries in China are looking to increase sales through new markets as trade war weighed on domestic growth and fuel demand.
The increase in Chinese shipments is expected to fill the supply gap created by refinery outages in the United States and the Middle East. But projected to hurt Asian gasoline margins.
PetroChina Co, the second-largest refinery in China, will export around 1.5 million tonnes of gasoline per month in July and August, said two experts with the knowledge of the situation.
That is 500,000 higher than the 1 million tonnes exported in June and close to 1.69 million tonnes exported in March.
“Gasoline surplus in China is exacerbated by slowing demand growth, given weakening consumer confidence as the trade war continues, reflected also in slumping car sales,” said Michal Meidan, director of the China energy program at Oxford Institute of Energy Studies.