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Chinese state-owned oil refineries have begun talks on joint oil purchases. In the case of their successful completion in the world will be the biggest buyer of raw materials, which can affect its value, according to Bloomberg.
In the future the group will include China Petroleum & Chemical Corp. (Sinopec), Sinochem, PetroChina and China National Offshore Oil Corporation (CNOOC). Regulators had already approved the Union, which collectively buys five million barrels of oil per day.
As the newspaper notes, such a Union will allow the companies to avoid price wars. First, they want to file joint applications for some grades of Russian and African oil in the spot market.
In the first phase of changes to the procurement can touch the Siberian ESPO grade oil that comes by pipeline from Eastern Siberia to the Pacific ocean. A joint bid may submit in June.
Members of the Alliance allow for the possibility of its expansion, then they were joined by independent refiners, including small, from Shandong province.
The idea emerged against the background of rising prices on the spot market that occurred simultaneously with the early recovery of China’s economy after the epidemic of the coronavirus. Analogue was the group purchase of copper concentrate, which the Chinese metallurgists created in 2003. Currently it goes through the 80 percent of imports of this product in China.
Earlier experts noticed that in 2020, taking advantage of low oil prices, China has decided to increase the import of raw materials, although the demand for the products of local neftepererabativaushiy plants will be reduced because of the pandemic coronavirus.
Video, photo All from Russia.