Oil traders lose out as China cracks down on pollution
As the government tackles environmental concerns and a glut of fuel at home, some traders find they have nothing to do
Beijing/Singapore — A little more than a year ago, China’s fast-growing private fuel makers were the newly minted stars of the global oil market, importing crude from the world’s biggest producers and seeking to sell their products abroad in a threat to rivals across Asia. Now, as the government cracks down on pollution and a glut of fuel at home, some traders who the refiners lured with an ambition to establish a global footprint are finding they have nothing to do. The processors, known as teapots, have been denied export licences by the government, meaning they will have to remain home to compete with state-owned refining giants. That is a relief for the wider Asian fuel market already overwhelmed by cheap supplies of Chinese petrol and diesel, according to BMI Research. "We had specially hired three independent oil-products traders, who are now basically idled, which is quite a waste," said Zhang Liucheng, director and vice-president at Shandong Dongming Petrochemical Group, the...
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