China’s Oil Refinery Throughput Rising To Meet Export, Domestic Demand

Refinery throughput in China rose 17.4% on the year in July, according to Reuters, as refiners maintain output to meet summer travel demand.

• Total refinery throughput was 63.13m mt in July, equivalent to 14.87m b/d, according to National Bureau of Statistics (NBS) data.
• Domestic fuel demand has risen with the arrival of the summer travel season, notably for gasoline and jet fuel. Domestic gasoline inventories dropped 3% between mid-June and mid-July, according to data from China-based consultancy Longzhong.
• Chinese refiners have also capitalised on strong fuel profit margins in the region, with refined fuel product exports in July rising 55.8% from a year earlier, according to customs data released last week.
• State-owned refineries increased their processing rates in July to an average of 78%-82%, up 2-3 percentage points on the month, according to data from consultancy Zhuochuang.
• Meanwhile, China’s apparent oil demand rose 21.2% year on year in July to 14.74m b/d, according to Bloomberg, sourcing figures from the National Bureau of Statistics China Customs General Administration.