Independent refiners in Shandong reduce operating rates to 50% amid tanker disruptions and shrinking margins.
Independent refiners in China’s Shandong province have slashed operating rates to 50%, down from 55% in April, as the Strait of Hormuz crisis disrupts crude flows and erodes margins. Losses are estimated at $74 to $88 per barrel, pushing refiners into negative territory.
The decline follows prolonged tanker paralysis in the Strait, which has weakened demand and pressured refining economics. Industry sources expect further cuts as the conflict persists, with no immediate resolution in sight.
Markets have yet to react significantly, but sustained disruptions could tighten Asian product supplies and lift regional fuel prices.