China Petroleum & Chemical Corp will process 1 million metric tons less oil per month than previously planned over the summer, Bloomberg reports, citing people familiar with the matter. The cuts are equal to around 240,000 barrels per day.
“The oil market seems to have grown immune to news about OPEC output cuts, meaning supply-side stories that normally affect prices aren’t having as much impact now,” analyst with Shandong-based industry researcher SCI99, was quoted as saying. “It’s time to look over to the demand side. And on that front, with China’s fuel demand weakening, it basically means oil may stay lower for longer.”