Asian LNG Importers Plan Winter Stockpiling

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  • China’s oil and gas majors PetroChina, Sinopec and CNOOC will this week start releasing interim results and production plans for the rest of 2022.
  • This will provide insights into the country’s H2 crude demand and imports.

A recent news article published in the Platts states that top Asian LNG importers plan winter stockpiling; China oil majors’ production plans in focus.

Fewer cars in South Korea

Fewer cars on South Korean roads due to record rainfall could prompt local refiners and traders to sell surplus gasoline into regional spot markets.

A potential gasoline glut could further weigh down cracks, with Asia already seeing a drop in car usage due to high retail fuel prices, surging inflation and weak currencies.

While summer has barely ended, some of Asia’s top LNG importers like South Korea and Thailand are already eyeing the spot market for inventories ahead of winter. Asia is expected to compete with Europe for winter LNG supply.

India’s domestic wheat prices

India’s domestic wheat prices are up more than 15% month-on-month due to a shortfall in local supply. The country was reportedly mulling a reduction in wheat import duties, signaling a potential entry into the international wheat market.

International wheat prices are up 25% year on year. Any increase inIndia’s demand could further tighten global supply.

Copper producers in China

Copper producers in China are struggling with output amid widespread power shortages. Markets will be watching whether more copper smelters will curb production to assess the impact on downstream demand.

I’m Barbara Lorenzo Caluag and thanks for kicking off your Monday with us at S&P Global Commodity Insights.

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Source: Platts

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