China’s refinery crude oil throughput rebounded in October from a 16-month low in September as refiners ramped up production amid high fuel demand and prices. According to data from the National Bureau of Statistics (NBS), Chinese refiners processed 58.4 million tons (13.75 million bpd) of crude oil in October, compared to 13.64 million bpd in the previous month. For the first ten months of 2021, China’s refinery runs reached 585.15 million tons, an increase of 5.2% from a year earlier.
Refined fuel product prices have been increasing in China since mid-August, driven by robust demand from the industrial sector amid tight supply. Wholesale prices of diesel and gasoline in southern China jumped over 30% through late last month when Beijing announced it would release fuels from strategic reserves.
State-owned Sinopec said it had raised its diesel production by 20% from September to October, adding that its refineries were now running at full production. PetroChina also said it had ramped up diesel supply in October. State-owned refiners are expected to continue boosting diesel output through December. Operating rates of Independent refiners in Shandong province also improved from 68% at the end of September to 73% in late October.
