From sharp cuts to Chinese oil production to falling inventories of refined fuel products, there is an extent of possibility that Asia's oil markets are slowly returning to balance. Global inventories of refined products have all fallen since the start of the month. They are now at or below levels seen this time last year, as per Thomson Reuters data. The drawdown come after China, this week reported a 9.8% fall in the output for Sept, amounting to one of the deepest cuts on record.
The falling stocks in most oil trading hubs, including Singapore, Europe's Amsterdam, Rotterdam, Antwerp, and in the US, as well as China's declining production, are indications of a market coming closer into balance following 2 years of consistent crude and refined product oversupply. Analysts are of view that the tighter markets were on account of both strengthening demand and tightening supplies.