A Glance of China Oil Market 20260420

On the demand end, the gasoline demand is still constrained by high prices, but the retail sales will stabilize with gas stations launching promotion campaigns. The gasoil demand, on the other hand, is likely to remain resilient when some engineering projects restart.

A Glance of China Oil Market 20260420

Weekly News

MTBE export talks stall as forward orders tumble

High feedstock costs and persistently narrowing domestic-international arbitrage spreads have frozen forward MTBE export discussions, with orders for May and beyond falling significantly from earlier levels. MTBE exports face multiple headwinds. Orders for May and beyond have declined notably from earlier periods, and the cross-border arbitrage window has effectively closed, eliminating trading opportunities. European spot supply is relatively ample, while strong ETBE demand continues to cap MTBE premiums, eroding its cost advantage over competing components. Read Full Story

China's 15th Five-Year Plan emphasizes market-driven gas pricing and domestic supply security

China has unveiled its 15th Five-Year Plan (2026-2030), outlining a dual focus on market-oriented natural gas pricing and domestic supply security enhancement as the country is seeking to reduce import dependency and stabilize energy systems amid global volatility. The plan prioritizes pricing mechanisms driven by supply and demand, explicitly calling for deeper natural gas price reforms. Residential tiered pricing for gas, electricity, and water will also be optimized. These measures aim to make end-user gas prices more responsive to market conditions, especially as international LNG and oil-linked import costs remain highly volatile due to geopolitical tensions. Read Full Story

Petcoke operating rates keep falling, output set to accelerate decline in April

As of April 14, China's weekly average delayed coking capacity utilization rate stood at 60.72%, with weekly output at 535,100 tonnes, down 2.04% month-on-month. April is peak maintenance season, and total monthly output is expected to fall 9.23%, hitting a five-year low. April is the peak season for refinery maintenance, and crude oil supply risks are escalating, accelerating the decline in petcoke output. Its total monthly output is forecast at 2,285,800 tonnes, down 9.23% month-on-month, with delayed coking capacity utilization rate sliding 4.76 percentage points to 60.78%, which will be the lowest in five years. Read Full Story