Chinese state-owned refineries increase output in response to growing demand

China's state-owned oil refineries are increasing production after finishing scheduled maintenance. According to Reuters, this is due to seasonal growth in energy demand in the third quarter, as well as the need to replenish depleted diesel and gasoline stocks.

The news agency expects the increase in oil refining volumes to continue until the end of the third quarter. This will lead to a rise in crude imports to China. However, several factors will curb the surge in gasoline and diesel fuel consumption. These include a prolonged downturn in the real estate sector, trade tariffs, and increased sales of electric cars and trucks.

In the last week of June, the utilization rate of state-owned refineries in China exceeded 80%, compared to approximately 73% the previous month, according to consulting firm Oilchem. This was the highest figure in the last five years.

Reuters calculations show that total oil refining in China amounted to 15.15 million barrels per day in June, the highest since September 2023.