Top oil executives in Singapore face a grim outlook as China’s economic slowdown and changing energy dynamics affect profits. Processing margins have declined, and OPEC’s supply adjustments haven’t stabilized prices, leading to bearish sentiment among traders and analysts.
While Saudi Arabia has invested more in Chinese refiners, locking in some downstream demand, it’s unclear if that’s enough to stem a decline. A slump in margins is capping processors’ ability to pay for imports, leading operating rates at China’s private refining sector to hover at close to 50% or lower in the past weeks. State-owned processors, meanwhile, are considering trimming volumes in a counter-seasonal move.
