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Refining plants located in Southern China are forecast to supply 109,000 metric tonnes of fuel oil in July, up 17 percent on the previous month, local market intelligence firm C1 Energy reports.

According to estimates, 10 leading refineries are predicted to produce 68,000 metric tonnes of fuel oil in July, down 3 percent on last month's output, while 17 so called 'minor' plants in the region are forecast to supply 41,000 metric tonnes of fuel oil this month, representing a surge of 78 percent compared to June.

The predicted output comprises 61,000 metric tonnes of residue, 38,000 metric tonne of slurry and 10,000 metric tonnes of bitumen feedstock.