Independent refineries in Shandong Province held about 328,000mt of oil product inventories in total on May 17, sharply up 175,000mt or 114.4% from two weeks ago, C1's research showed. Of the stockpiles, about 141,000mt was gasoline, up 81,000mt or 135%; gasoil surged 94,000mt or 101% to 187,000mt.
High oil product prices and smooth sales amid price hike expectations stimulated Shandong independent refineries to lift operating rates around the May Day holiday (Apr 30-May 2), market sources denoted. The rates average 46.8% in the first half of May, up 8 percentage points from the same period last year, indicated C1's data.
The refineries saw sales drop dramatically in recent ten days as oil product traders became sidelined on slumps in international crude prices, according to market sources.
Average ex-refinery price of 93-Ron gasoline from Shandong independent refineries plunged Yuan 400/mt to Yuan 8,975/mt during May 7-17, according to C1's assessment. However, gasoil prices of the refineries remained firm on persistent supply tightness, which were only Yuan 50/mt less than retail ceilings.
C1's research involves 20 independent refineries with annual topping capacities totaling 44.1-mil mt, which accounts for 77.23% of the total refining capacity of independent refineries in Shandong. These refineries have a combined 661,000-mt storage capacity for gasoline and 881,000-mt for gasoil.
