China’s Teapot Refineries Saw Slight Jump in Run Rates

SEATTLE (Oil Monster): The run rates of China's independent oil refiners, sometimes known as teapot refiners, have somewhat increased. Short-term pressure is anticipated from supply issues brought on by U.S. sanctions and tariffs as well as low local fuel demand.

The nation's teapot refineries buy crude at a discount, mostly from nations like Venezuela, Iran, and Russia. They make up around one-fourth of the nation's capacity to process oil. Their activities may be negatively impacted by the U.S. administration's tighter limitations on exports from these countries. It should be mentioned that once U.S. sanctions were imposed in January of this year, shipments from Russia to China saw a significant drop.

The Shandong region's teapot capacity utilization rates increased marginally to an average of about 46% in March of this year, according to data released by a local consulting firm. The improved supply from Iran and Russia was primarily responsible for the higher rate. When compared to the capacity utilization rates, which in late 2023 averaged about 65%, the rates were noticeably lower.

As per reports, a number of teapots have shifted their maintenance tasks to January and February and scaled back operations.

According to data, the nation's state-owned refineries are reportedly operating at over 75% of their potential.

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