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Tag: Sulphur

Sulphur Industry News

Chinese refinery output has been steadily falling this year as covid-related lockdowns impact upon the economy. Figures from the National Bureau of Statistics showed that refinery output fell to 13.8 million bbl/d in April – down 2% year on year – then took a sharp fall in May to 12.6 million bbl/d, more than 10% down on the same time in 2021, when output stood at 14.1 million bbl/d. May’s figure was 12.7 million bbl/d, a modest increase on April, but still 1.6 million bbl/d down compared to May 2021. Refining margins have also been hurt by high oil prices due to the Ukraine conflict, dropping close to zero or even negative according to industry estimates.

Where is oil going?

The past couple of years have been quite the wild ride, with major global events dominating markets outside of the usual concerns of broad market supply and demand. It seems like a long time ago now, but this time last year, the price of a barrel of Brent crude was about $75. Go back two years, in the wake of the onset of covid restrictions, and that barrel would have cost you $40 (and just $25 a couple of months before that). In the wake of Russia’s attack on Ukraine, you could easily have paid $130, and it has been hovering around $110/bbl for the past few months. The last time oil spent any time at that level was in 2014, just before the Chinese economy ran out of steam and prices slumped by 70%.