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The Annual Equipment of Pipeline and Oil &Gas Storage and Transportation Event
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The 27thBeijing International Exhibition on Equipment of Pipeline and Oil & Gas Storage and Transportation

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March 17-19,2027

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China July Implied Oil Demand Rises 0.9 pct on Year

Pubdate:2012-08-14 10:40 Source:lijing Click:

China's implied oil demand rose 0.9 percent in July from a year earlier, Reuters calculations showed, although was at the second-lowest level this year as refiners capped production.

Demand in the world's second-largest oil consumer was weak in the second quarter, falling in April for the first time in at least three years, then inching up 0.8 percent in May and 0.5 percent in June.

China used 9.15 million bpd of oil last month, the second-lowest level this year after consuming 9.04 million bpd in June, according to Reuters calculations based on preliminary government data.

"Oil product sales were recovering slightly in the second half of July in anticipation of a fuel price hike. End-user demand, although not strong, is not worsening further," said a Beijing-based oil analyst. "Oil demand could pick up further if economic growth accelerates in the fourth quarter of this year."

Implied demand is calculated by adding crude oil throughput and net imports of refined oil products, but leaves out stock changes, which are rarely disclosed in China.

Refined fuel stocks in China eased by 7.56 percent in June from May, the official Xinhua News Agency reported last month.

China's refinery throughput inched up 1.1 percent to 8.85 million bpd in July, reversing three straight months of declines, but still at the second-lowest level this year.

China raised pump prices for diesel and gasoline by 4-5 percent from Friday, the first increase after three previous price cuts this year saw prices fall by nearly 14 percent.

The increase could help pare some of the deep losses refiners incurred over the past several months and will likely prompt them to raise production after months of curbs.

A Reuters poll earlier this week showed the country's top 12 oil plants, which make up about a third of its total refining capacity, were staying put in August by capping throughput at reduced rates set the previous month.

CRUDE IMPORTS AT NINE-MONTH LOW

China's crude oil imports in July rose 12 percent from a year earlier, but were the lowest since November.

China imported 21.83 million tonnes of crude oil last month, or about 5.14 million barrels per day (bpd), data from the General Administration of Customs showed on Friday.

That compared with 4.58 mln bpd in July 2011, which was a low base at the time, and 5.29 million bpd in June. Imports hit an all-time high of 6 million bpd in May.

For the first seven months, the world's second-largest crude buyer imported 10.2 percent more than a year earlier, at 161.9 million tonnes, or about 5.55 million bpd, the data showed.

The growth in crude imports outpaced growth in China's refinery crude throughput, indicating some of the imported barrels ended up in storage.

Imports have been curbed in the last couple of months as refineries sank deeper into the red, processing pricey crude oil bought earlier at a higher cost and forced to sell at state-set pump rates.

"We were tempted to buy a bit more when global prices fell in May and June, but were told to hold off or even resell cargoes already bought as refineries were cutting runs," said a crude trader with a state refiner.

"Now prices are heading up and refineries may turn to raise production. There was for sure some disconnect between domestic refinery operations and China's crude purchasing."

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