Refiner suspends business travel to China on virus worries
U.S. oil refiner Phillips 66 has suspended business travel to China due to the coronavirus outbreak, a spokesman for the company said .
The company said it is monitoring the outbreak and updates from the World Health Organization.
China's independent refiners slash operations as virus hits fuel sales
Independent refineries in China’s eastern Shandong province, who collectively import about a fifth of the country’s crude, have slashed output by 30% to 50% in just over a week as the coronavirus outbreak hit fuel demand and distribution, executives and analysts said.
Utilisation rates dropped below 50% by the end of January at key plants, from around 66% a week earlier, the lowest since at least 2015, according to surveys of around 40 plants conducted by local consultancies JLC Network Technology and Longzhong Information Group.
The sudden production cut left crude oil storage tanks full at China’s top crude import terminal of Qingdao, causing delays in discharging cargoes and leaving refiners, already under pressure from weak margins, facing hefty demurrage charges to compensate shipowners for delays.
(Reporting By Jessica Resnick-Ault Editing by Chizu Nomiyama)
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