China's apparent oil demand in April rose by 2.1% to an average 9.66 million barrels per day (b/d) or 39.54 million mt, a just-released Platts analysis of Chinese government data showed. This followed a 1.9% year-over-year expansion in March to an average 9.77 million b/d.

Apparent demand for oil in April was the lowest level since August 2012, when apparent demand averaged 8.95 million b/d.

Refinery runs, or capacity utilization, fell 3% in April versus March to an average 9.36 million b/d, but were up 2.5% compared to April 2012, according to data released May 13 by China’s National Bureau of Statistics (NBS).

China’s General Administration of Customs data released May 21 showed net oil product imports in April totaled 1.22 million mt, a 10.3% decrease year over year. The decline in net oil product imports was spurred by weakening domestic gasoil demand, which prompted continued gasoil exports by China’s refiners.

China’s total oil product exports in April rose 60.8% compared with April 2012 to 2.67 million mt, with gasoil exports rising 325% year over year to 340,000 mt in April although they eased from March exports of 420,000 mt.

Chinese refiners have now exported 1.39 million mt of gasoil in the first four months of the year, compared with just 300,000 mt over the same period of 2012.

“China will likely continue to export high levels of gasoil until the end of the second quarter of this year, and market sources say this is mainly due to weakening domestic demand,” said Song Yen Ling, Platts senior writer, China.

Apparent demand for gasoil, which makes up the largest component of overall oil product demand, contracted by 3.8% year over year in April to 13.53 million mt. Domestic output fell by 2% to 13.82 million mt, while net exports rose 49.6% year on year to 290,000 mt.

Tags: Platts