Chinese refiners to flood the market

Chinese exports from its refinery overcapacity to increase Asian market disruption

Asian refining margins may in the short-term look better than in some regions, most notably Europe. But the structural trend in China suggests this may be the briefest of respites. High Chinese economic growth rates may soon be a thing of the past. And China's ageing and more affluent population will see a transition in its economy, with consumer spending and services displacing energy-hungry industries such as manufacturing and construction. In short, there is a "disconnect" between Chinese oil imports for refining and its domestic needs for product, says Caroline Bain, chief commodities economist at consultancy Capital Economics in London. The Chinese have "overestimated future demand" ami