China’s Oil Refinery Throughput Rises in March Amid Signs of Economic Recovery
China’s oil refinery throughput rose in March as refiners increased runs in response to a tentative economic recovery in the country. According to data from the National Bureau of Statistics, total refinery throughput reached 63.78 million metric tonnes, equivalent to 15.09 million barrels per day (bpd), up from 14.45 million in the previous two months.
The increase in run rates was 1.3% higher than the figure from last March, as refiners stockpiled fuel ahead of scheduled maintenance. Despite a 6.23% decrease in crude imports to 11.55 million bpd, China’s economy grew by 5.3% in the first quarter, surpassing analysts’ expectations.
Manufacturing activity also showed signs of improvement, with the official manufacturing purchasing managers’ index expanding for the first time in six months in March. Additionally, domestic transport fuel demand received a boost from the Qingming festival travel period in early April.
However, sluggish diesel demand in the mining and infrastructure construction sector limited runs, according to industry consultancy Vortexa. Crude throughput for March was forecasted to rise by about 200,000 bpd, accompanied by an increase in onshore crude inventories.
Furthermore, China’s crude oil production in March rose by 1.2% from a year earlier to 18.37 million tonnes, the highest level since June 2015. Natural gas production also grew by 4.5% to hit a record 21.6 billion cubic metres. China’s investments in domestic production have been crucial in offsetting the decline in output since 2015.