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Crude Oil Processing in China Falls in April Amid Elevated Oil Prices, Commerzbank Says

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Crude oil processing in China was significantly scaled back in April due to negative margins amid high crude oil prices, Commerzbank said in a Tuesday note.

Crude processing was 13.3 million barrels per day in April, 1.2 million barrels per day lower than in March and its lowest level since the coronavirus pandemic in August 2022, the bank noted.

In May, further cuts are expected despite the government's call to maintain high production levels, as refineries are likely to bring forward closures as part of their routine maintenance schedule, Commerzbank said.

However, crude oil stocks appear to continue to rise in purely mathematical terms, albeit not as sharply as in previous months, despite a sharper drop in crude oil imports in April compared with the previous month, the bank said.

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