Chinese refineries will cut production in December

China’s top fuel refiners are preparing to cut production to its lowest level in 20 months due to excess inventory and weak demand, Reuters reported. Twelve of China’s largest plants plan to reduce production by 5% in December, continuing the decline in production that started in November. Reuters cited state media as reporting that gas and diesel stockpiles held by Sinopec and CNPC rose to record highs by the end of October, and have remained high. China is also beginning to export diesel again after an Olympics-driven import binge. Industry sources suggest that refiners are waiting for an expected overhaul of fuel price and tax policies before making any significant moves.