VLCC owners have been enjoying a new source of demand in China after the opening of an independent Shandong Yulong refinery.
The 400,000-barrel-per-day plant received its first crude cargo on 6 November in a muted big tanker market.
Oil analytics company Kpler said Taiwanese owner Global Energy Maritime’s 302,800-dwt Gem No 2 (built 2017) was fixed by trader Vitol.
It unloaded Oman crude from Mina Al Fahal at Yantai, having loaded the cargo on 11 October.
The refinery initiated trial operations at one of its 200,000-bpd crude distillation units and associated secondary units in late September.
Crude was first introduced to the unit at the end of August.
Yulong has secured at least four VLCCs carrying oil from the Middle East, including Oman and Upper Zakum grades, as well as several Russian ESPO cargoes, Kpler reported.
These feedstocks are expected to arrive through to December.
Waning Chinese crude imports are regarded as crucial for the VLCC market.
Clarksons Securities has previously said China’s oil demand is expected to respond positively to the country’s economic latest stimulus package.
Stimulus measures disappoint
On Friday, the National People’s Congress announced a fiscal stimulus that fell short of market expectations, however.
Clarksons Securities explained that the primary measure introduced was a plan to help local governments refinance their debt at lower interest rates.
Capital Economics reported that an additional CNY 6trn ($833bn) in special bonds will now be issued over the next three years to bring off-balance-sheet debt into the budget.
An additional CNY 4trn in special bonds will be approved in stages over five years for similar purposes.
Rather than funding new projects, the money will be used primarily to pay down off-budget debt.
While initial rumours suggested a possible increase in household spending, no such measures were announced.
The finance ministry has indicated that additional assistance could be forthcoming, with next year’s budget deficit expected to grow.
“Overall, the stimulus measures did not meet expectations,” Clarksons analysts led by Frode Morkedal said.
“Having said that, we believe China’s goals are to maintain GDP growth between 4% and 5%. This means that any slowdown is likely to be accompanied by additional stimulus measures.
“However, stimulus efforts are unlikely to result in an immediate economic boost beyond what has already been planned from previous spending.”
