Oil Glut Expanding to Refined Products

Oil experts can put this into better context, but the 30,000 ft view is China doing what China does, building up massive overcapacity and exporting it to global market.

Caixin: China’s Growing Oil-Refining Overcapacity to Fuel Surge in Exports
China’s total refining capacity will grow by 27 million tons to reach 887 million tons in 2020, helping push exports up 18% to 64.5 million tons from last year’s 54.66 million tons, the CNPC Economics & Technology Research Institute (ETRI) said in a report on Monday, putting China on a path to overtake South Korea as the largest oil exporter in the Asia-Pacific region.

...The rise in excess capacity also comes as growth in domestic demand slows.

...Continued growth of refining capacity is largely a function of local government support in an effort to boost economic development, said Wang Lining, head of oil market research at the CNPC ETRI.

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