China is unlikely to build its commercial stocks of crude oil in the second half of 2018 as refiners prefer to keep their inventory low for daily operation amid price volatility, analysts said last week. Receive daily email alerts, subscriber notes & personalize your experience. Register Now “Chinese refiners would like to build up crude oil stocks when oil prices are rising, which helps them lift their refining margins. Currently, however, oil prices are unlikely to rise further and cross $80/b, given the strong dollar, which discourages refiners from building their stocks,” a Beijing-based analyst said. Chinese refiners normally process crude oil barrels that they fixed 1-2 months ahead, while the domestic price of oil products are set based on the movement of a basket of international crude prices in the previous 10 working days. The pricing mechanism for crude oil and oil products determine that refiners […]