The epidemic’s effect on energy consumption in China, the world’s top crude importer, is unprecedented. About a third of the country’s total refining capacity is down at a time when oil markets were already oversupplied. Economic activity remains subdued, making it uncertain how long the downturn will last. That’s already being reflected in the value of virtually every crude grade imported into Asia-Pacific. And there is also the question of whether Beijing will use this as an opportunity to consolidate China’s refining sector, contributing to the erosion of demand in the longer term.
Host: Alejandro Barbajosa, Argus VP, crude & LPG - Middle East & Asia-Pacific