Small refineries struggling to stay afloat in fast-changing energy world

Under pressure from a plunge in world oil prices that began in June, small local refineries that were already grappling with a glutted market have seen their profits almost evaporate, and some may even close, industry sources said.

The price of one international trading benchmark, Brent crude oil, has declined by more than 55 percent in the past seven months to below $50 a barrel.

But Chinese refineries have not seen any benefit from this decline because of weak downstream markets and high inventories that had to be sold at lower prices, said Li Yan, an oil analyst with Shandong Longzhong Information Technology Co.