China fuel oil production in August rises sharply for the third consecutive month, reflecting a wider switch in the country to more heavy, sour crude grades because of attractive economics as well as strong fuel oil cracks; some regional refiners have shut their bottom upgrading units in recent months because of weak demand for lighter products like gasoline and diesel amid a slowing global economy. But with fuel oil cracks easing and gasoil cracks shooting up in recent weeks, refiners in the region will reduce the production of residue once again; with a steady increase in government-set gasoline and gasoil prices, Chinese refiners will also raise the production of lighter products to take advantage of better margins. China August fuel oil output rose 17.8% on-year to 1.66 million tons vs 1.55 million tons in July.
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