SINGAPORE: A sudden oil buying spree by China’s independent refiners has taken Asian traders by surprise.
After weeks of production cuts, cargo deferrals and cancellations because of the deepening impact of coronavirus on Chinese crude demand, companies including Shandong Shouguang Luqing Petrochemical Co., Shandong Huifeng Petroleum Chemical Co. and Sinochem Hongrun Petrochemical Co. have returned to the market in a big way.
They’re all non-state-owned refiners, known as teapots, from the eastern province of Shandong. Until recently, this corner of the industry appeared to be doing everything to avoid buying crude including cutting processing rates.
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