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Chinese independent refiners - closing to grow

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Report summary

China is opening up crude imports to independent refiners, popularly called as teapot refiners. This is in exchange for closing small and inefficient refining units, part of a overall market reform by the Government towards a fully deregulated oil market.  This development has the potential to reduce fuel oil imports and increase crude imports. With higher runs from teapots amidst product oversupply, product exports from China could also be on the rise in the near term.

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