China Weekly Oil Summary: Product Production at 3-Year High

Chinese independent refineries gasoline and gasoil production was at a three year high in Q1 2024 with a combined production of 33.47 million tonnes year-to-date as of March 21 - up 3.74% y/y according to OilChem data.

• China is set for record imports of Russian crude this month according to Kpler figures, boosted by an increase in Sokol flows.
• China’s Shandong Yulong Petrochemical Co. has purchased spot crude cargoes in preparation for the start of its new 400kb/d refinery according to Bloomberg sources.
• China’s Sinochem Group has purchased a 550kbbl cargo from Suncor Energy Inc loading from the Trans Mountain Expansion pipeline in May-June according to Bloomberg sources. Unipec was heard buying a 550k bbl AWB cargo from TMX for June arrival at Brent minus $4.5/b, according to Argus.
• PetroChina's Jieyang refinery is set to receive its first direct Venezuelan crude cargo this weekend according to Kpler.
• The Yemen-based Houthi rebels have assured China and Russia their ships can sail through the Red Sea and Gulf of Aden without being attacked, sources told Bloomberg.
• Global oil demand is “very healthy” according to ExxonMobil’s CEO Darren Woods in an interview with CNBC. “We are seeing really high [oil product] demand in places like India, China has got really healthy demand” Woods said.
• DATA: Industrial production rose 7.0% y/y, up from December's 6.8% and beating the 5.1% forecast.
• China’s real-estate investment fell 9% y/y during the first two months of the year following the previous 9.6% decrease.
• FROM THE PRESS: Official data from January and February shows no improvement in real-estate sector fundamentals which may need longer to stabilise according to Ming Ming, chief economist at CITIC Securities.