Independent refiners see opportunities, woes

Chinese independent refiners, also known as teapots, saw their collective crude oil imports reach 2.72 million barrels per day in January, up 27.7 percent year-on-year, figures from S&P Global Platts reveal.

Their crude imports in January decreased 8.7 percent from December, but insiders believe the reason is due to the comparatively lower demand in China during Spring Festival, which fell in early February this year.

The buying in February pushed up spot premiums for the independent refiners' favorite crude grades from Russia, Oman, Africa, and Europe by between 50 US cents and $1 more a barrel than quotes from early January, according to Reuters' trade sources.