Asia based authorities have passed orders to several factories to restrict their activities before the G20 summit to be held in Hangzhou in the month of September. This curtailing apart from the floods that took place earlier may reduce demand for petroleum in China by around 250,000 barrels per day during the 3rd quarter.
This slowdown at petrochemical plants as well as refineries may reduce China’s oil import figures that touched record high figures during the early 2016. Those unexpected purchases as well as the disruptions in supply enabled crude to rally around eighty percent at the beginning of 2016, after rallying low for more than twelve years.
It must be noted that China’s president Xi Jinping is planning to display his country’s strength during the summit. The summit will be attended by the leaders of the prominent countries. These leaders are coming together when the countries around the world are experiencing slow trade and poor growth.
China’s latest attempt to stabilize its economy failed in the month of July even as private organizations continued to remain reluctant towards investing and the Chinese authorities are looking to restrict financial problems and reduce excessive capacity. China has asked around 255 organizations to curb their output.