Platts Report: China's Aug. Oil Demand Up 7.6% from Year Ago at 8.4 Mil. b/d

SINGAPORE, Sept. 21 /PRNewswire/ -- Platts -- China consumed an estimated 35.54 million metric tons (mt) of oil in August, 7.6% higher than the corresponding month of last year, but a continuing decline from June's all-time peak, according to a just-released Platts analysis of official data from the People's Republic of China.

The August apparent* oil demand equates to an average 8.40 million barrels per day (b/d), compared with 8.47 million b/d in July and 8.97 million b/d in June this year.

Meanwhile, for the first eight months of 2010, China's apparent oil demand was 282.17 million mt or an average of 8.51 million b/d, up 10.9% from the corresponding period of 2009, Platts data showed.

Chinese refiners processed a total 34.73 million mt or an average 8.21 million b/d of crude oil in August, up 6.7% from a year ago, but down 1.6% from July, according to data released earlier in the month by China's National Bureau of Statistics. Crude imports jumped 13% from a year ago to 20.9 million mt, or about 4.92 million b/d.

"The growth in China's monthly implied oil demand has dropped to single digits since May from the 13% to 18% range seen in the first four months of this year.  While this could be partly explained by a low comparison base in the early part of 2009 when the Chinese economy briefly stalled, one cannot ignore the month-on-month decline since July," said Vandana Hari, Asia editorial director at Platts.

"At first glance, the decline in Chinese oil consumption from June's record high of 8.97 million b/d seems counter-intuitive in the face of official data showing acceleration in the country's industrial output, retail sales, and imports in August. But that suggests the current trough in oil demand might be short-lived," Hari said.

Meanwhile, China's net refined product imports surged nearly 76% to 0.81 million mt in August from 0.46 million mt a year earlier. On a month-to-month basis, August imports surpassed July's 0.54 million mt as product exports dropped more sharply than imports. Data table follows.

*Platts calculates China's apparent or implied oil demand on the basis of crude throughput volumes at the domestic refineries and net oil product imports, as reported by the National Bureau of Statistics and Chinese customs.

The government releases data on imports, exports, domestic crude production and refinery throughput data, but does not give official data on the country's actual oil consumption figure and oil stockpiles. Official statistics on oil storage are released intermittently.

Platts releases its monthly calculation of China's apparent demand between the 18th and 26th of every month via press release and via its website. Any use of this information must be appropriately attributed to Platts.

For more information on crude oil, visit the Platts website at www.platts.com. For Chinese-language information on oil and the energy and metals markets, visit http://www.platts.cn/.

About Platts: Platts, a division of The McGraw-Hill Companies (NYSE: MHP), is a leading global provider of energy and commodities information. With a century of business experience, Platts serves customers across more than 150 countries. An independent provider, Platts serves the oil, natural gas, electricity, emissions, nuclear power, coal, petrochemical, shipping, and metals markets from 17 offices worldwide. Platts' real-time news, pricing, analytical services and conferences help markets operate with transparency and efficiency. Traders, risk managers, analysts, and industry leaders depend upon Platts to help them make better trading and investment decisions. Additional information is available at http://www.platts.com.

About The McGraw-Hill Companies: Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a global information and education company providing knowledge, insights and analysis in the financial, education and business information sectors through leading brands including Standard & Poor's, McGraw-Hill Education, Platts, and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2009 were $5.95 billion. Additional information is available at http://www.mcgraw-hill.com/.  

SOURCE Platts

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