Petrobras ships crude oil for storage in China

Brazil’s Petrobras will ship crude oil to China in June and July to respond more quickly to demand from local refiners.

The company has leased fuel storage tanks in the port city of Qingdao, which will allow the sale of small quantities of oil promptly to the local market.

Initial crude oil shipments from the Lula and Búzios fields are expected to reach China in late June and early July. The company’s goal is to gain share among China’s independent refiners known as “teapots”.

Petrobras chartered the VLCC (“very large crude carrier”) Maran Cleo, which is scheduled to arrive in Qingdao on June 24. The VLCC contains 2m barrels of crude oil from the Lula field, part of which has already been sold. The rest will be stored.

Another Petrobras VLCC will arrive in Qingdao between July 10 and 15 and contains about 1m barrels of crude from the Buzios field for storage.

Source: Reuters

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