China Urges Teapots to Maintain Refinery Rates Amid Oil Price Surge

China's state planner has issued a directive to independent refiners, urging them not to lower their production rates below the average levels maintained over the past two years. Several sources have shared this information, highlighting the country's efforts to secure its domestic fuel supply.

This decision comes after expectations that smaller refiners might reduce their crude processing rates in response to a significant rise in oil prices. The increase is a result of geopolitical tensions stemming from the U.S.-Israeli conflict with Iran, coupled with weak domestic fuel demand.

The National Development and Reform Commission (NDRC) communicated this message during a recent meeting with independent refiners. The NDRC has not commented on the matter directly. Non-compliance with the directive may lead to reduced crude import quotas for these refiners, suggesting China's serious approach to managing its energy resources amid ongoing global tensions.