Chinese Oil Demand Up

22 November 2009 (Last Updated November 22nd, 2009 18:30)

China's Oil demand in October 2009 recorded 33.886 million tons, representing a 10% increase compared to 30.75 million tons recorded during the same period last year, according to Platts official data. China's October demand represented the second successive month of double-digit year-o

China's Oil demand in October 2009 recorded 33.886 million tons, representing a 10% increase compared to 30.75 million tons recorded during the same period last year, according to Platts official data.

China's October demand represented the second successive month of double-digit year-on-year growth, where September's oil demand jumped by 12.6% compared to the earlier year.

October oil demand was slightly higher than September's demand of 33.8 million tons.

In October, China's refineries processed 7.87 million barrels a day or 33.29 million tons of crude, exceeding 33.11 million tons recorded in July.

Platts Asia news director Vandana Hari said China's industrial production and retail sales increased by over 16% year on year in October according to official data, but the Chinese growth story continues to be pushed by domestic demand.

"Among short-term factors, expectations of the government announcing a hike in domestic products prices in late October is said to have spurred stockpiling of fuel, which explains the high refining rates," he said.