Bankster Crime

Exposing Fraud in the Banking System

No Financing And No Demand: Chinese Refiners Run Into Trouble

Featured Story

This image has an empty alt attribute; its file name is Bankster-Logo-2.png

International banks are suspending credit lines for some independent oil refiners worried about the growing risk of defaults across industries because of the coronavirus epidemic, Reuters reports, citing industry sources…

According to the sources, at least three private refiners, or teapots, have had credit lines to the tune of $600 million suspended by banks including French Natixis, Dutch ING, and Singapore DBS Group Holdings.

“All our applications for new open-account credits are frozen … these clean credits are pivotal as we buy 6 to 8 million barrels of oil each month,” one source told Reuters.

Refiners, both private and state, have already reduced their run rates in response to the slump in fuel demand resulting from the outbreak, and now they have deepened these cuts, Bloomberg reported last week.

The average as of last Thursday was about 10 million bpd, down by 25 percent on the same time last year, when the average run rates were at a record high of close to 13 million bpd. Analysts expect the low run rates to continue at least until the end of this month, but if it spills into March, some refiners – notably independent refiners – will start experiencing a lack of storage space, too, after earlier this month they took advantage of low prices to stock up on crude.

Now, on top of that, the teapots that have accounted for a large portion of China’s increased thirst for oil that was instrumental in oil price recovery after the crisis, are having financing trouble.

“We were told by our banks that so long as the open-account credits are for oil heading to Shandong, it will be very hard chance winning approvals,” another Reuters source said.

The three refiners refused credit line extensions have combined oil import quotas of about 240,000 bpd, Reuters reports. If more banks become wary of defaults among refiners, this could hit imports over the longer-term.

This image has an empty alt attribute; its file name is Bankster-Logo-2.png

StevieRay Hansen
Editor, Bankster Crime

MY MISSION IS NOT TO CONVINCE YOU, ONLY TO INFORM YOU…
https://bankstercrime.com/coronavirus-triggers-biggest-shock-to-oil-markets-since-lehman-crisis/

“Have I therefore become your enemy by telling you the truth?”

CoronaVirus, Oil Drop, Coronavirus, Fraud, Banks, Money, Corruption, Bankers

Don't Miss

By StevieRay Hansen

BanksterCrime By Pam Martens and Russ Martens: U.S. Secretary of Commerce, Gina Raimondo Yesterday, the U.S. Department of Commerce announced it was proposing to ban certain…

Loading

Read More

The Biden Administration’s Strategy to Undermine Silvergate and Permanently Exclude Cryptocurrency from the Financial System, AKA Tribulation

By BanksterCrime

BanksterCrime: by Tyler Durden Sunday, Sep 29, 2024 – 06:50 PM Submitted by Nic Carter In late 2022, Silvergate Bank was on top of the…

Loading

Read More

By StevieRay Hansen

By BanksterCrime Telegram Will Share User Data with Governments Following CEO’s ArrestThese adjustments follow the arrest of the app’s CEO, Pavel Durov, in France last…

Loading

Read More

By StevieRay Hansen

BanksterCrime Wall Street Has Moved Vast Sums of Its Trading to Its Federally-Insured Banks By Pam Martens and Russ Martens: September 23, 2024 ~ President Bill…

Loading

Read More

By BanksterCrime

Goldman Sachs’ Bank Derivatives Have Grown from $40 Trillion to $54 Trillion in Five Years; So How Did Its Credit Exposure Improve by 200 Percent?…

Loading

Read More

StevieRay Hansen

In his riveting memoir, "A Long Journey Home", StevieRay Hansen will lead you through his incredible journey from homeless kid to multimillionaire oilman willing to give a helping hand to other throwaway kids. Available on Amazon.

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *