A Glance of China Oil Market 20260316

On the demand end, the gasoline demand has gradually fallen to normal levels post the Chinese New Year holiday travel peak. For gasoil, the logistics sector has performed steadily, while the outdoor projects are slow in recovery due to high oil prices.

A Glance of China Oil Market 20260316

Weekly News

Six refineries cut rates as Hormuz disruption bites, more to join

The Strait of Hormuz closure is triggering supply chain disruptions across China's refining sector, that is, the vessel delays have multiplied, port arrivals have plunged, and procurement costs are surging. In the near term, refineries are grappling with operational uncertainty. Over the medium-to-long term, forced cuts in capacity utilization rates, feedstock restructuring, and margin compression are expected. As of March 5, OilChem's survey shows at least six refineries have already implemented preventive load reductions ranging from 7% to 20%, with more expected to join in the coming weeks. Read Full Story

Propane shortage on conflicts to hinder PDH operating rate

The operating rate of propane dehydrogenation (PDH) industry is anticipated to move down, as the conflicts in the Middle East will undermine the supply of feedstock propane. The capacity of PDH units in China has reached 23.43 million t/y so far this year. However, the supply of domestic propane is limited. Only three enterprises with a total capacity of 800,000 t/y can use domestic propane as raw material. The remaining PDH enterprises need to purchase imported propane for production. The Strait of Hormuz is difficult to navigate, which affects the outflow of propane resources in the Middle East. For PDH enterprises that are highly dependent on imported propane, the difficulty in transporting raw materials will have a relatively direct impact on production. Read Full Story

Holiday travel rush lifts gasoline, but EVs keep long-term demand in check

China's automotive market saw steady overall operations in January 2026, though sales figures softened. The downturn was driven by three key factors, including the phase-out of the revised electric vehicle (EV) purchase tax policy, a transitional gap in local subsidy programs, and a pull-forward of demand late last year. In detail, China's auto sales opened the year at 2.346 million units in January 2026, down 28.3% month-on-month and 3.18% year-on-year, according to data from China Association of Automobile Manufacturers. Read Full Story