{"id":704,"date":"2022-07-15T19:11:32","date_gmt":"2022-07-15T19:11:32","guid":{"rendered":"http:\/\/roydadnaft.ir\/English\/?p=704"},"modified":"2022-07-15T19:11:34","modified_gmt":"2022-07-15T19:11:34","slug":"chinas-refinery-output-in-first-annual-decline-since-at-least-2011","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/704\/","title":{"rendered":"China’s refinery output in first annual decline since at least 2011"},"content":{"rendered":"
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China’s refinery throughput for the six months to June marked the first annual decline for the period since at least 2011, data showed on Friday, as strict COVID-19 restrictions and fuel export curbs dampened production.<\/p>\n\n\n\n

For June, output was 54.94 million tonnes, according to data from the National Bureau of Statistics (NBS), bringing January-June processing volumes to 332.22 million tonnes or 13.4 million barrels per day (bpd), down 6% from a year earlier.<\/p>\n\n\n\n

The production in June was equivalent to 13.37 million bpd – up 5% from 12.7 million bpd in May, but about 10% below the all-time high of 14.8 million bpd reached in June 2021.<\/p>\n\n\n\n

The month-on-month rebound came as some independent refiners began raising production late in May, after steep cuts between February and April, in response to a moderate pick up in demand as some COVID-19 curbs were eased.<\/p>\n\n\n\n

The return of Sinopec Corp’s Yangzi and Hainan refineries from overhauls also contributed to the higher processing, though the state major had to close a 320,000 bpd plant in Shanghai due to a fire on June 18.<\/p>\n\n\n\n

China’s demand for refined oil products has been falling since March amid strict curbs to contain the spread of COVID, with gasoline and aviation fuel the worst hit.<\/p>\n\n\n\n

But analysts expect throughput to pick up in the third quarter as Beijing tweaks its COVID policy and accelerates infrastructure spending to help revive a flagging economy.<\/p>\n\n\n\n

China has already issued fuel export quotas earlier than expected, which could help refiners boost output.<\/p>\n\n\n\n

The NBS data showed China’s crude oil production rose 3.6% on the year to 17.19 million tonnes last month, with daily output hitting an all-time high at 4.18 million bpd.<\/p>\n\n\n\n

Production in the first six months rose 4% versus a year earlier to 102.88 million tonnes (4.15 million bpd), as national oil firms accelerated developing conventional and unconventional resources on Beijing’s call to boost domestic supply security.<\/p>\n\n\n\n

Despite record production, the increase remains marginal as China imports nearly three quarters of its crude oil needs.<\/p>\n\n\n\n

Growth in natural gas production, however, slowed to 0.4% in June from a year earlier to 17.3 billion cubic meters, but output year-to-date rose 4.9%.<\/p>\n\n\n\n

(tonne = 7.3 barrels for crude oil)<\/p>\n\n\n\n

Reporting by Chen Aizhu and Muyu Xu; Editing by Himani Sarkar<\/p>\n

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