Asian refiners struggling with record-low margins are resisting cutting operating rates on expectations that new rules mandating the use of cleaner-burning ship fuels will boost diesel demand.
Nine of ten major Chinese, Indian and South Korean processors surveyed by Bloomberg said they’re running at normal run rates and not planning to reduce them, asking not to be identified because of internal policy. Only one — a Chinese refiner — said it would cut run rates by about 5% of its total capacity in December.
