China’s diesel exports set record as nation’s refiners boost output
Gas exports in September rebound, while oil refining climbs 2.2 per cent
China’s fuel exports rebounded in September, with diesel hitting a record, as refiners increased output following seasonal maintenance.
The world’s largest energy consumer exported 1.6 million metric tons of diesel last month, according to data released by the General Administration of Customs on Friday. Shipments averaged almost 397,900 barrels a day, more than 50 per cent higher from a month earlier. Domestic diesel production gained three per cent from August to 3.58 million barrels a day, Bloomberg calculations based on data from the National Bureau of Statistics show.
The nation’s oil refining rate last month rose 2.2 per cent from Au- gust to 10.7 million barrels a day. That may rise further starting this month as diesel demand improves in the last quarter of the year, according to ICIS China, a Shanghaibased commodity researcher.
“China’s fuel exports will likely remain strong for the rest of the year as oil processing is expected to climb in the fourth quarter in the absence of refinery maintenance,” Lin Jiaxin, an analyst with ICIS China, said by phone from Guangzhou, before data were released.
Gasoline exports rose 25 per cent from August, rebounding from a five-month low to 840,000 tons, or 233,800 barrels a day. Outbound kerosene shipments fell 4.4 per cent to 1.08 million tons.
Exports of gasoline and diesel have been elevated amid tepid domestic demand growth and higher refinery activity. Fuel consumption fell year-on-year for a fifth month in September, according to Bloomberg calculations. Total oil demand is forecast to rise about 2.1 per cent this year to 11.71 million barrels a day, slowing from last year’s 6.5 per cent growth, according to International Energy Agency estimates in its latest monthly report.
Some factors may slow exports. A rapid expansion in car sales in the past three months may support domestic gasoline demand in the fourth quarter, Bloomberg Intelligence analyst Wang Lu said in an Oct. 3 note. China’s fourth batch of fuel-export quotas for this year dropped 43 per cent from the previous allowance to 3.47 million tons, according to ICIS China.