China's petroleum fuel demand reaches record high

Petroleum fuel consumption in China was estimated to be the record high in July. Although crude oil processing in the country in July rose 7.1% on year to 1.39 million tonnes per day, crude oil processing figures have been decreasing after the previous record that was scored in December 2012. Meanwhile, shipment of petroleum fuel rose to the record high in July, since suppliers reduced inventories.

China's crude oil import in July was record high at 842,000 tonnes per day, while the country's end-July crude oil stocks fell 1.6% from a month ago. It is not sure whether the higher import was stored to strategic reserve without being processed in the month or not. However, supply of petroleum fuel such as gasoline and diesel seemed not to be enough in July, because petroleum fuel stocks as of end-July fell 5.0% from a month earlier. Especially, gasoline inventory slipped 7.2% on month.

Automobile manufacturing in China rose 15.1% on year in the first seven months in this year. It is quite higher growth compared to 6.3% on year during 2012. More cars require more fuel like gasoline and diesel. It's OK. Meanwhile, slower crude oil processing in China over the past several months despite the steady growth of petroleum fuel could suggest slump in demand for other industrial fuel or petrochemical materials.

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