China Oil Demand Hits A New Record - Up 18% Year on Year

SINGAPORE, Jan. 21, 2011 /PRNewswire/ -- Platts – China's apparent oil demand* in December rose 18% year over year to a record 40.73 million metric tons (mt), or an average 9.6 million barrels per day (b/d), with both crude throughput and net oil product imports rising, according to just-released Platts' analysis of the latest official data.

Oil demand in December was also up 7% from November's 38.09 million mt, or 9.3 million b/d, the previous record high.

For all of 2010, China's apparent oil demand rose 11.43% year over year to a record 434.40 million mt, or an average 8.71 million b/d, Platts' analysis showed.

Chinese state-owned refiners processed 38.72 million mt of crude oil in December, up 11.92% year on year and a rise of 5.64% from November, according to data released Thursday by China's National Bureau of Statistics. In 2010, Chinese refiners' crude throughput rose 12.89% year on year to 423.05 million metric tons.

FACTS Global Energy expects China's oil demand to increase to an average 9.5 million b/d in 2011 as the Chinese economy continues to expand and the consumption of transportation fuels increases.

"The last two months when China has hit oil demand records are proof in point of the country's apparent insatiable appetite for oil and transport fuel," said Thomas Hogue, Platts news director for Asia.

"First, in November and December there were high refinery runs and imports as Chinese state-controlled companies tried to meet diesel and other motor fuel demand, and since then it appears that runs have remained high as refineries seek to make sure they have enough product to meet demand during the Chinese New Year holidays in February," Hogue added.

China's net oil product imports in December came in at 2.01 million mt, which compares to net oil product exports of 0.08 million mt in December 2009. Total net oil product imports in 2010 stood at 11.35 million mt, down from 15.24 million mt in 2009.

China's oil demand is expected to continue growing this year, albeit at a slower rate of 4.4-5.5%, with average oil demand in 2011 seen at 9.3-9.5 million b/d, analysts said earlier.

Wood Mackenzie is forecasting total oil demand to increase to 9.3 million b/d in 2011, with steady demand growth in transportation fuels like gasoline and diesel and healthy demand in naphtha because of a vibrant chemical sector.