Strong demand lifts oil product imports

China imported more oil products such as diesel and gasoline in August to meet strong domestic demand, but less fuel oil, amid waning demand from power utilities in the country.

The strong oil products imports in August were led by diesel, which rose 72.8 percent year on year to 131,382 metric tons, but still a significant slowdown from the 176.7 percent growth rate in the previous month.

The slowdown could be attributed to importers scaling back August imports due to sky-high Asian benchmark Singapore diesel prices during that month.

China¡¯s imports of fuel oil fell 12.7 percent year on year to 2.19 million tons in August, a slower rate of decline than the 16.1 percent fall in July.

Fuel oil imports were weaker in August, as demand from utility companies usually slows down in the third and fourth quarters.

Russian producers supplied a total of 831,787 tons of crude oil to China in August, or 6.84 million tons in the January-August period, the General Administration of Customs said.

Oman leads a long list of crude suppliers to China, selling 1.54 million tons in August and 11.23 million tons for the eight-month period, followed by Middle East giants Saudi Arabia and Iran, according to customs data.

Despite its voracious appetite, China¡¯s crude oil exports rose in August by 19.7 percent to 412,598 tons, or about 97,600 barrels a day.

China exports mainly heavier, low-sulfur crude, mostly to South Korea and Indonesia, for either refining into fuel oil or burning directly at power plants to generate electricity.

Source: Shenzhen Daily-Agencies