Record-high diesel exports by China in June, oversupply of oil to weigh on prices

Oil prices are still showing a tendency towards weakness. Brent is trading at below $57 per barrel, while WTI has dipped below the $50 per barrel mark for the first time since the beginning of April. 

The prospect of ongoing oversupply on the oil market if Iran resumes its supply is continuing to weigh on prices. Also, the oversupply on the crude oil market appears to be spilling over onto the oil products market. 

This is particularly true of diesel, where demand is weak at present for seasonal reasons. Crude oil processing in China climbed to a record 10.56 million barrels per day in June, meaning that China is processing considerably more crude oil than it needs itself. Accordingly, net exports of refined petroleum products are rising, says Commerzbank. 

According to trade statistics published today, China exported 1.159 million tons of gasoline and diesel on balance in June - a record 664,000 tons of this total was diesel.