China gasoline output down 9.5% y/y at 12.43 mln metric tons - stats bureau

China gasoline output down 9.5% y/y at 12.43 mln metric tons - stats bureau

In a significant development, China's crude oil stockpiles are likely to have grown at an elevated rate for the third consecutive month in May, according to Reuters columnist Clyde Russell. This trend could allow Beijing to purchase lower volumes of oil over the next few weeks, potentially reducing the impact of the spike in oil prices due to the Israel-Iran conflict [1].

Russell's calculations suggest that China stockpiled approximately 1.4 million barrels per day (bpd) in May. This figure represents the available crude from imports and domestic production that wasn't used by refineries last month. The likely inventory build is the third consecutive month in which China has added more than 1 million bpd to its strategic and commercial crude stockpiles [1].

China's gasoline output has also shown a notable decline. According to data from the National Bureau of Statistics, gasoline output in May was down by 9.5% year-over-year, reaching 12.43 million metric tons. This decrease is attributed to heavy seasonal maintenance at China's refineries, which processed 1.8% less crude oil than in the previous year, reaching the lowest level in nine months [1].

The increased crude oil imports in March and April were not necessarily a sign of recovering fuel demand but rather an aggressive stockpiling strategy by Chinese refiners amid uncertainties about sanctioned barrels. This stockpiling could prove beneficial for China, allowing it to reduce crude buying at higher prices in the future [1].

References:
[1] https://oilprice.com/Latest-Energy-News/World-News/China-Continues-to-Stockpile-Crude-Oil.html