The Chinese New Year has improved the prospects of the Chinese oil market

China’s crude oil purchases have increased since mid-February.
Many trips in China during the Chinese New Year celebrations provoked a steady recovery in demand, traders say. In mid-February, China increased the purchase of crude oil from Saudi Arabia for March. The volume of purchases increased in anticipation of refinery repairs when imports of raw materials are declining.
At the same time, Energy Aspects analysts note that some Chinese refineries have postponed scheduled repairs or increased production rates after an increase in demand, which arose against the background of a boom in trips to the Chinese New Year. The increase in travel gave a long-awaited boost to oil markets, which predicted lower consumption levels, especially as demand for gasoline increased.
In the second and fourth quarters of this year, the volume of decommissioned refineries in China will grow to a three—year high – by 18%. At the same time, the oil purchased this month will arrive to customers in May of this year.