Beijing. China’s largest refinery company Zhejiang Petrochemical Corp has reduced its operations. This company is supported by Saudi Aramco. The company is now shutting down a 200,000 barrel-per-day crude unit. This maintenance work has been brought forward and started in March. A representative of the company said that this overhaul will continue for a month in March. This will reduce the company’s total processing by 20 percent.
Currently, due to the ongoing conflict in the Middle East, the supply of crude oil has reduced significantly. Almost all shipping in the Strait of Hormuz has stopped after the US-Israeli attacks. This strait is the route for 20 percent of the world’s oil supply. China is the world’s largest oil importer and takes about half of its crude supply from the Middle East. Due to reduced supply and increasing oil prices, other refineries will also start reducing their operations.
