China Fuel Oil Demand Jumps Almost 25% in June

Platts says China's apparent oil demand reached reached 11.25 million bpd.

China's apparent oil demand reached 11.25 million barrels per day (bpd) during the month of June, a 4.1 percent rise compared to the same period in 2014, but a decline from year-over-year increases of about 10 percent seen in the previous three months, according to an analysis by Platts.

However apparent demand for fuel oil in June is said to have soared 24.7 percent year-over-year to 1.08 million bpd in June, while January-June demand climbed 9.5 percent year-over-year to 947,000 bpd.

"Net imports of fuel oil rose 69 percent year over year to 658,000 bpd, led by a jump in imports of petroleum bitumen blend," said Platts.

Gasoil demand in June is said to have reached 3.63 million bpd, a decline of 0.3 percent year-over-year, although Platts notes that June 2014 saw a "relatively high base" for Gasoil demand.

"Gasoil demand could in reality be lower than Platts estimates given that data from Xinhua's China Petroleum Stockpile Statistics showed that commercial gasoil stocks rose by nearly 28 percent at the end of June from last year," added Jaipuriyar.

Over the first half of 2015, apparent demand for gasoil reportedly rose 4.2 percent to 3.62 million bpd.

Data from the country's National Bureau of Statistics (NBS) reportedly shows China's refinery throughput in June averaged 10.59 million bpd.

Overall, during the first half of 2015, China's total apparent oil demand averaged 11.12 million bpd, a 7.3 percent growth compared to the first six months of 2014.

Earlier this year, China was said to have imported 20 percent less crude in May than in April.