A Glance of China Oil Market 20260727

Weekly News

Tighter Russian supply on geopolitics lifts China petcoke

Escalating Russia-Ukraine conflicts crippled delayed coking units (DCU) at Russia's key refineries. As China's top high-sulfur petcoke supplier, Russia will see sharply reduced shipments to China, making it suffer a short-term supply gap. Also, firm downstream demand pushes up both imported Russian and domestic high-sulfur petcoke, with the market bullish for the future. The war damages over 40% of Russia's refining capacity. Disrupted output covers 1.8%S medium-sulfur petcoke and 4%S high-sulfur petcoke, with export-focused high-sulfur coke suffering the tightest supply.

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LNG heavy trucks remain a cornerstone of liquid consumption in China

LNG heavy-duty trucks are expected to remain the largest downstream consumption segment for LNG in 2026, with full-year sales projected at roughly 185,000 units. Their resilience stems from a sustained cost advantage over diesel, with the LNG-to-diesel price ratio stays within the 0.60-0.80 range, keeping fuel costs roughly 25% below diesel. In 2025, LNG bunkering and refueling already accounted for 67% of LNG liquid consumption, with heavy-duty trucks contributing over 97%. As replacement demand from aging fleets continues to be released, the share of vehicle LNG is expected to rise further.

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China's MTBE exports surge 115.54% in H1 on sustained arbitrage

China's cumulative shipments of methyl tert-butyl ether (MTBE) in the first half of the year more than doubled year-on-year, as sustained arbitrage windows between domestic and international markets kept export order activity robust. For the January-June period, cumulative exports of MTBE totaled around 3.79 million tonnes, representing a staggering increase of 2.03 million tonnes or 115.54% compared with the same period in 2025, according to data from the General Administration of Customs of PRC (GACC).

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