China Turns a Glut of Oil Into a Flood of Diesel Swamping Asia – Bloomberg Business

Fuel producers from India to South Korea are finding that rising refined products from China are cutting the profit margins they’ve enjoyed from cheap oil to the lowest in more than a year. Worse may be coming. China’s total net exports of oil products — a measure that strips out imports — will rise 31 percent this year to 25 million metric tons, China National Petroleum Corp., the country’s biggest energy company, said in its annual research report last month. That comes after diesel exports jumped almost 75 percent last year. “If China dumps more fuel into the market, international prices will crash,” said B.K. Namdeo, director of refineries at India’s state-run Hindustan Petroleum Corp. “It will be similar to what happened to crude prices due to the oversupply. If international prices of oil products come down, then it will hurt margins of all refiners.”

Source: China Turns a Glut of Oil Into a Flood of Diesel Swamping Asia – Bloomberg Business

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