China consumed an estimated 35.54 million metric tonnes (mt) of oil in August, 7.6% higher than the corresponding month of last year, but a continuing decline from June’s all-time peak, according to a just-released Platts analysis of official data from the People’s Republic of China.
The August apparent* oil demand equates to an average 8.40 million bpd, compared with 8.47 million bpd in July and 8.97 million bpd in June this year.
Meanwhile, for the first eight months of 2010, China’s apparent oil demand was 282.17 million mt or an average of 8.51 million bpd, up 10.9% from the corresponding period of 2009, Platts data showed.
Chinese refiners processed a total 34.73 million mt or an average 8.21 million bpd of crude oil in August, up 6.7% from a year ago, but down 1.6% from July, according to data released earlier in the month by China’s National Bureau of Statistics. Crude imports jumped 13% from a year ago to 20.9 million mt, or about 4.92 million bpd.
“The growth in China’s monthly implied oil demand has dropped to single digits since May from the 13% to 18% range seen in the first four months of this year. While this could be partly explained by a low comparison base in the early part of 2009 when the Chinese economy briefly stalled, one cannot ignore the month-on-month decline since July,” said Vandana Hari, Asia editorial director at Platts.
“At first glance, the decline in Chinese oil consumption from June’s record high of 8.97 million bpd seems counter-intuitive in the face of official data showing acceleration in the country’s industrial output, retail sales, and imports in August. But that suggests the current trough in oil demand might be short-lived,” Hari said.
Meanwhile, China’s net refined product imports surged nearly 76% to 0.81 million mt in August from 0.46 million mt a year earlier. On a month-to-month basis, August imports surpassed July’s 0.54 million mt as product exports dropped more sharply than imports.
*Platts calculates China’s apparent or implied oil demand on the basis of crude throughput volumes at the domestic refineries and net oil product imports, as reported by the National Bureau of Statistics and Chinese customs.
