State-owned oil enterprises have taken more resolute measures to help ensure the supply and price stability of refined oil products

Recently, the tight balance between global energy supply and demand is difficult to alleviate, and the continuous upward price has aroused market concern
.
At the same time, with the large-scale power curtailment in China, the hot sales of diesel generators have led to a significant increase in
diesel demand.
Affected by multiple factors at home and abroad, the supply of diesel resources in China is tight, and some areas have limited sales or even stopped selling, and the contradiction between supply and demand has become increasingly prominent
.

In order to avoid the further intensification of the supply and demand tension, state-owned oil enterprises actively assume supply responsibilities, more resolutely ensure supply and stable prices, and propose to increase efforts to increase the production of refined oil, especially diesel, and effectively ensure the supply of
refined oil resources.

According to market information, the two state-owned oil companies require their refineries to open up full horsepower, make every effort to increase crude oil processing, and maximize the output of refined oil products
.
Industry insiders said that the crude oil processing volume remained basically stable in October, but only to improve the ratio
of refined oil output.
Starting in November, the two state-owned oil companies will gradually increase the crude oil processing capacity of most of their refineries, while further improving the yield of refined products and the ratio of fuel to gas, and the increase in gasoline and diesel production will be significantly enhanced
.

With the promotion of the specific policy of "carbon peaking and carbon neutrality", the supervision of crude oil import quotas has been tightened, and the import volume of crude oil since the second quarter of this year has dropped sharply compared with 2020 and is basically the same
as that of 2019.
Affected by this, the current refinery crude oil inventory level is generally low, in order to fully protect the refinery operating load increase space, shorten the raw material procurement time difference, the relevant state departments will actively cooperate, for the refinery with a gap in raw material supply, can be coordinated to seconded the adjacent national reserve crude oil to increase production
.

In addition, in recent years, the main domestic refineries have taken "oil reduction and increase" as a breakthrough to accelerate the transformation and upgrading to refining and
chemical enterprises.
At the same time, market-oriented, optimize the product structure, and constantly reduce the diesel to steam ratio
.
Since 2020, the pace of adjustment of the two main refineries has accelerated, and the average yield of refined oil products in the second quarter of 2021 is at a low level of about 60%, and the pyro-to-steam ratio has dropped to 0.
9, breaking through a record low
.
According to the current demand changes and supply assurance tasks, the direction of "oil reduction and increase" has been corrected, and will continue to adjust on the basis of October to improve the yield of refined oil products and the ratio of
diesel to gas.

According to preliminary understanding, the two main refineries plan to increase diesel production by 1.
3 million tons in November, and after the implementation of a series of additional policies, refined oil production is expected to further increase
.
Diesel exports will also be fully transferred to domestic sales in the later period, and the export plan in October has been reduced to 300,000 tons
.
At the same time, according to the shipping schedule data, CNOOC purchased a total of 50,000 tons of diesel cargo in South China in early November, which will also form a small supplement to domestic resources in the short term, but considering the prevention of imported inflation, the import route may not be vigorously liberalized
.
With the release of domestic resource supply in November, the supply shortage at state-run gas stations is expected to be the first to ease
.

In addition, Zhejiang Petrochemical, the largest private refining and chemical enterprise in China, was officially approved yesterday for a crude oil import quota of 12 million tons / year, which will meet the production capacity of 40 million tons / year
.
It is understood that the early suspension of the plant of Zhejiang Petrochemical has been rapidly started, and the operating rate will be significantly increased in November, and it is expected that under the full load operation of the four sets of devices, the monthly gasoline and diesel production will be greatly increased
compared with the previous period.
In summary, with the increase in state-owned oil enterprises and Zhejiang petrochemicals, Jinlianchuang expects diesel production to increase by 15% in November, and the tight supply balance situation nationwide by the end of the year is expected to usher in an inflection point
.