SINGAPORE, Aug. 27, 2014 /PRNewswire/ -- China's
apparent oil demand* in July decreased by 2.1% over the same month
a year ago, according to a just-released Platts analysis of Chinese
government data.
The apparent oil demand in July was 40.63 million mt or 9.61
million barrels per day (b/d). On a month-over-month basis, this
was a 6.2% drop from 10.25 million b/d in June. The fall reversed
the positive growth experienced in June.
The contraction occurred because China became a net exporter of oil products in
July, with net outflows totaling 450,000 mt, according to data
released by the General Administration of Customs on August 8.
In July, China reduced its
imports of some oil products, including fuel oil and jet/kerosene;
while increasing exports of others, such as gasoil and gasoline.
This resulted from a combination of weakening demand – as in the
case of gasoil and fuel oil – and higher domestic production for
jet/kerosene and gasoline.
Overall, oil product imports during the month slumped 42.8%
year-over-year to 1.86 million mt, while exports rose 13.8% to 2.31
million mt.
"The weakness in China's oil
demand reflects the ongoing slowdown in its economy," James Bourne, Platts associate editorial
director for Asia news. "It is the
third time this year that the country has flipped to being a net
oil product exporter. This was also seen in March and May,
suggesting weakening oil demand."
In July, crude oil throughput by domestic refineries edged up 2%
year over year to 9.71 million b/d. However, this represents a 5%
slide from the June level of 10.22 million b/d, according to the
August 13 data from China's National Bureau of Statistics.
China's apparent oil demand
over the first seven months of 2014 edged up just 0.1% to 9.86
million b/d, the slowest pace of growth for the period since Platts
started compiling Chinese oil demand data in 2005. In comparison,
apparent oil demand expanded by 4% from the January-July period
last year.
Gasoline apparent demand rose 8.6% in July from a year earlier
to 8.51 million mt. Year-to-date apparent demand for the fuel, used
in the booming transport sector, rose 10% year over year.
"Domestic refiners have been raising their yields in favor of
gasoline and jet fuel/kerosene and away from gasoil to suit the
country's current oil demand profile," said Bourne.
Meanwhile, gasoil again contracted in July due to sluggish
industrial activity, with apparent demand declining 2.2% year on
year to 14.06 million mt, after growing 4.4% year on year in June.
Gasoil demand has been hit by China's economic growth slowdown.
Similarly, apparent demand for fuel oil fell 28% year on year in
July to 2.28 million mt, the lowest level since August 2013, as net imports plunged 77% to
260,000 mt.
Consumption of imported fuel oil – widely used as a raw material
for the manufacturing of refined petroleum products by small,
independent refiners known as "teapot" refineries – has slowed in
the last two years as refiners gained greater access to domestic
crude oil.
MONTHLY TRADE DATA IN MILLION METRIC TONS
|
Jul '14
|
Jul '13
|
% Chg
|
Jun '14
|
May '14
|
Apr '14
|
Mar '14
|
Net crude imports
(million mt)
|
23.76
|
26.11
|
-9.0
|
23.28
|
26.08
|
27.88
|
23.52
|
Crude production
(million mt)
|
17.34
|
17.15
|
+1.1
|
17.50
|
17.76
|
16.98
|
17.64
|
Apparent demand
(million mt)
|
40.63
|
41.49
|
-2.1
|
41.94
|
39.92
|
39.92
|
41.55
|
Apparent demand ('000
b/d)
|
9,607
|
9,810
|
-2.1
|
10,247
|
9,439
|
9,754
|
9,825
|
Sources: China's General Administration of Customs,
National Bureau of Statistics, Platts
Month-to-month demand in China
is generally viewed to be subject to short-term anomalies which are
of interest and important to note, but which often fail to reveal
the country's underlying demand trends. Year-to-year comparisons
are viewed by the marketplace to be more indicative of the
country's energy profile.
*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.
Platts also takes into account undeclared revisions in NBS
historical data.
The government releases data on imports, exports, domestic crude
production and refinery throughput data, but does not give official
data on the country's actual oil consumption figure and oil
stockpiles. Official statistics on oil storage are released
intermittently.
Platts releases its monthly calculation of China's apparent demand between the 18th and
26th of every month via press release and via its website. Any use
of this information must be appropriately attributed to Platts.
Platts uses a conversion rate of 7.33 barrels of crude per metric
ton, the widely-accepted benchmark for markets East of Suez.
For more information on crude oil, visit the Platts website at
www.platts.com. For Chinese-language information on oil and the
energy and metals markets, visit http://www.platts.cn/.
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SOURCE Platts