Russian and Western Nuclear Industries Remain Interdependent
Crude oil refineries in China produced 6.1% less fuel in July this year than a year earlier, logging the fourth consecutive monthly decline in output.
The daily processing rate stood at some 13.91 million barrels, which was the lowest since October 2022, Reuters reported, citing data from the Chinese National Bureau of Statistics.
The average daily processing rate for the first seven months of the year stood a little higher, at 14.37 million barrels, which was still down on the year, at 1.2%.
Domestic oil production, however, rose, by some 3.4% to 17.9 million tons. That's equal to around 4.22 million barrels daily.
Imports of crude oil in China were also down in July, hitting the lowest since September 2022 as refiners reduced their capacity utilization rates amid weaker demand for fuels. According to China-based consultancy Oilchem, independent refiners, known as teapots, operated at an average of 56.11% of their capacity in July. That was 7.3% lower than the average for July 2023.
Fuel demand in China has been affected by the greater adoption of LNG-powered trucks and, most recently, by alternatives to cars including high-speed rail and air travel.
Higher EV and hybrid sales have also affected demand for fuels although gasoline demand specifically has remained stable in the past few months. China led the world in EV sales last month, booking a 31% increase in battery-electric and hybrid car sales combined.
In related news, factory output in China slowed last month, missing analysts' growth expectations and suggesting negative implications for oil demand. It still grew, however, by 5.1%, versus expectations of 5.2%. July growth was also a bit lower than forecasts, which stood at 5.2%.
The refinery and manufacturing output data on China is likely to affect oil prices that just started recovering after a dip earlier this week, prompted by geopolitical factors focusing on the Middle East.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com
Charles is a writer for Oilprice.com More