China’s refining growth prompts diesel questions

China’s heavy spending on new refining capacity has prompted many in the oil market to ask whether the country could turn into a major exporter of diesel fuel. The answer will, in part, depend on action taken by Beijing to rein in lending and cool an economy that has been the engine of oil demand growth in recent years. Concerns among rival exporters about Chinese competition may be premature if China’s gasoil demand grows by an expected 7% a year between 2011 and 2015, said Sushant Gupta, an analyst at oil and gas consultancy Wood Mackenzie. “China will either remain a small net exporter of diesel or have a balanced (supply-demand) position in the long term,” Gupta said. (January 27, 2010)