China becomes global player in refined crude oil industry

China becomes global player in refined crude oil industry

Hello from Hong Kong, where Covid-19 cases are back in single digits and everything has reopened (until 10pm). People are tentatively returning to bars and sports facilities, which “” while not quite full “” are no longer deserted.

Today's main piece is about an aspect of the economy that doesn't immediately spring to mind in a bustling financial and commercial centre: the products derived from crude oil.

Policy watch, meanwhile, looks at how discussions between Brussels and London are going since Lord David Frost's appointment as minister for EU relations on March 1. (Hint: not well.)

China's bubbling crude industry

For Chinese economy watchers, 2020 was a year filled with so many records “” from steel production to the December trade surplus “” that it was at times difficult to keep track. One of the areas where superlatives applied was crude oil imports, which rose 7.3 per cent to hit their highest-ever level of 542m tonnes last year.

Oil flowed into the country as refiners ramped up their purchases following collapsing prices “” while prices for Brent rose above $70 a barrel this week, those for West Texas Intermediate turned negative for a brief period last year “” and a rapid industrial recovery.

China's appetite for oil