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After a long period of dwindling demand, China’s oil consumption showed first signs of stabilizing in June as a rebound in industrial activity helped the country’s appetite for fuels such as gasoil recover from previous month’s multi-year lows. Total apparent oil demand in the world’s second-largest oil consumer averaged 11.32 million barrels a day in June, up 4% from May and more or less flat with June 2015 levels, down just 0.1%. China’s apparent oil demand has been going downhill since December, with the year-on-year fall widening to 2.7% in May, according to Platts calculations based on official data. Over the first six months of the year, cumulative apparent oil demand edged down 0.6% to 11.15 million barrels a day, but was higher than the average of 11.10 million barrels a day for the first five months. Platts China Oil Analytics expects the country’s oil demand to grow under 1% year on year in 2016. Beijing does not release official data on oil demand and stocks, but Platts calculates apparent demand for individual oil products by adding refining output, as reported by the National Bureau of Statistics, and net imports as reported by the customs department. By product, apparent demand for gasoil of 3.39 million barrels a day in June was down 6.4% year-on-year but up from the 70-month low of 3.14 million barrels a day in May. The decline was narrower than the average year-on-year decline of 8.2% in the first half of 2016. Gasoil stocks at the end of June were down 6.4% month on month after a 5.4% decrease in May, according to data published by state-owned news agency Xinhua. Fuel oil demand in June dropped 31.6% year on year to 765,000 b/d, and was 10.9% lower from May levels. Apparent demand for gasoline in June recovered from May, with a 4.6% month-on-month rise to 2.81 million barrels a day, which was also 2.6% higher than the same month last year. In May, apparent demand for gasoline had fallen 1.3% year on year to 2.68 million barrels a day, which was the first year-on-year decrease since February 2014.
SOURCE: platts.com
S&P Global Platts
LINK TO THE SOURCE ARTICLE:
China: Oil Consumption Shows Signs Of Steadying

 

platts_web11LINK TO THE SOURCE ARTICLE:
China: Oil Consumption Shows Signs Of Steadying

 

 

 

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