By OGJ editors
HOUSTON, Apr. 11 -- Gasoline exports from China appear ready to "explode," according to Boston-based research firm Energy Security Analysis Inc. (ESAI).
"January saw [Chinese] gasoline exports reach their lowest level in over a month, but in February exports nearly doubled, said Rick Mueller, analyst with ESAI. "We expect gasoline exports to rise still further through the second quarter," Mueller added.
ESAI said that the early growing season in China has bolstered diesel demand in the agricultural sector, resulting in increased refinery runs.
Simultaneously, ESAI said it anticipates refiners will increase their runs in order to prevent a jump in gas oil imports. (China—as part of its accession to the World Trade Organization—has promised to allow imports of gas oil.)
"In response to these pressures, several Chinese refineries have announced run increases ranging up to 17% from first quarter levels, which will produce a large surplus of gasoline for the Singapore market," Mueller said.
