Dark Clouds Loom For Oil As China Chases Blue Skies For G-20

Brent crude, the benchmark for more than half the world’s oil, traded at $48.67 a barrel at 11:22 a.m. Singapore time on the London-based ICE Futures Europe exchange. While futures are up about 30 percent in 2016, they are still more than 50 percent lower than mid-2014 levels. Their climb to the $100s earlier this decade was driven by China’s insatiable thirst for fuel, and their collapse two years ago came as the Asian nation’s economy slowed and global output peaked.

The factory output reductions for the G-20 meeting in China could eliminate about 400,000 barrels a day worth of crude processing at the nation’s refineries, according to Harry Liu, associate director for oil markets, midstream and downstream at IHS Markit Ltd.

"A number of major refineries will be required to cut back runs, therefore limiting a further rise in Chinese crude imports," Liu said by e-mail.

--With assistance from Ann Koh and Sarah Chen. To contact the reporters on this story: Serene Cheong in Singapore at scheong20@bloomberg.net; Ben Sharples in Hong Kong at bsharples@bloomberg.net; Dan Murtaugh in Singapore at dmurtaugh@bloomberg.net To contact the editors responsible for this story: Pratish Narayanan at pnarayanan9@bloomberg.net; Ramsey Al-Rikabi at ralrikabi@bloomberg.net Sungwoo Park


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