SINGAPORE, Aug. 31, 2015 /PRNewswire/ -- Platts, a leading global energy, metals, petrochemicals and agriculture information provider, has launched a new analysis platform that forecasts key supply and demand dynamics of domestic oil and petroleum markets in China.
Platts China Oil Analytics is a web-based platform that allows energy producers, traders and analysts to access detailed supply/demand analysis, volume forecasts and news together with refining margins and trade flows spanning the Chinese oil market. This includes fundamentals for crude oil, refined petroleum products and the refining industry in China.
Following a successful beta trial, two industry participants have already committed to use Platts China Oil Analytics.
"China is driving demand across global oil markets, and increasingly impacting oil product supply. There remains strong interest amongst investors and producers in developing a deeper understanding of China's oil consumption patterns and refinery capabilities," said Karen Chan, director of product management for petroleum and refined oil products, Asia-Pacific. "Our forecasts integrated in Platts China Oil Analytics show that despite the slowdown in China's economic growth, the near-term outlook for crude imports is surprisingly, more optimistic."
Despite slowing growth, China will continue to be the largest contributor to global crude oil demand growth for the foreseeable future. As a result, Platts forecasts the country will remain heavily reliant on imported crude oil to feed its burgeoning coastal refining hubs as the development of domestic shale and other unconventional energy sources is expected to remain muted.
China is making vast efforts to widen its crude oil slate by adding more high-sulfur processing capacity. By the end of 2017, 48% of refining capacity owned by the major state-owned companies will have the capability to process high-sulfur crude oil. A decade ago, this figure stood below 15%. In addition, refiners are also investing significantly to modernize their units to produce lower-sulfur fuels.
This crude diversification strategy will continue to evolve over the coming years. Platts expects the proportion of Middle Eastern crudes in China's overall imports will decline from 52% today to under 50% in the next five years as other region's suppliers gain market share. Russia's continued pivot towards Asian consumers has been accompanied by rising market share in China and this year, it became the second largest supplier of crude oil to the country, displacing Angola. The shale revolution in the U.S. has also prompted Latin American oil producers to aggressively market their crudes to Asia. By 2020, oil from Latin American could account for nearly 15% of China's total imports, up from 11% in 2014.
The Platts China Oil Analytics is distinct from the Platts Market-On-Close (MOC) price assessment process. For more information on the China Oil Analytics methodology, please click here.
Global, Americas: Kathleen Tanzy, + 1 917 331 4607, firstname.lastname@example.org
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