Chinese refineries keep up record runs

IRJ Feb 5 - Top Chinese refineries will continue to process crude oil in February near the record levels seen last month, suggesting the world's second-largest oil market could face supply slowdown should exports falter or demand growth slows. Twelve major plants accounting for more than a third of China's capacity, most of them on the eastern and southern seaboards, plan to process around 2.87 million barrels per day(bpd) of crude oil in February, little changed from the record daily rate in January, a Reuters poll showed. The refineries, likely to run at 91 percent of capacity, are taking advantage of strong margins for both domestic and export markets. Early in 2009, China changed from a subsidy system and began adjusting retail fuel prices in line with global crude, which gave refineries guaranteed margins.

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