Oil Daily | China's Oil Surplus Grows as Demand Shifts; Turkey Eyes Libya Investment Amid Instability

【Global Oil Supply and Demand】

China's crude oil surplus increased to around 1 million barrels per day as refiners stocked up on cheaper Russian crude. The surplus, based on imports, local production, and refining data, gives Chinese refiners flexibility amid rising prices. Despite a dip in refining rates due to weaker fuel demand, analysts suggest a shift towards electric vehicles is impacting oil demand.

【Oil-Producing Countries Dynamics】

Turkey's state-owned Turkish Petroleum plans to invest billions in Libya's offshore oil fields, stated its director general during the Libya Energy and Economic Summit. Libya seeks investment to boost oil production to 1.6 million barrels daily, with a bidding round for new licenses planned. The country's production has been hampered by political instability, despite abundant resources.

【Latest Oil Policies】

President-elect Donald Trump plans to sign executive orders related to energy, declaring a national energy emergency to boost oil and gas production. Intended actions include reversing previous administration policies and canceling federal drilling bans. Trump aims to increase energy production, cut funding for transition technologies, and limit new wind turbine construction on federal lands.

【Others】

China imported record coal volumes in 2024, despite a 7% dip in imports from Russia due to U.S. sanctions and reinstated Chinese tariffs. While imports from Russia fell, purchases from Indonesia and Australia surged, with Australian coal benefiting from the removal of a diplomatic-related ban. China remains the world's largest coal importer, widening its lead over India.