September 29, 2022 13:51 GMT
China's refiners are optimistic about domestic oil product demand in Q4 2022 and into 2023 as China emerges from covid restrictions according to the China panel at the Asia Pacific Petroleum Conference.
- Manufacturing and infrastructure construction have supported gasoil demand, but gasoline and jet fuel demand will not increase until covid restrictions have eased and international travel resumed.
- They expected oil demand to increase from Q3 to Q4 with growth into 2023 due to the low demand levels during 2022. China's gasoil demand in 2022 is expected 0.3% lower year on year to 4mbpd, gasoline down 7.7% to 3.3mbpd and jet fuel down 28.3% to 506kbpd according to S&P Global.
- China has set a target of capping China's refining capacity at 20mbpd in 2025, S&P Global data showed.