MOSCOW (MRC) -- China's exports of fuel products more than doubled in July from a year earlier, data showed on Friday, as refiners maintained high run rates and took advantage of strong export margins, said Hydrocarbonprocessing.
Exports of diesel, the biggest fuel by share of refinery output, totaled 910,000 metric tons, up 153.1% on last year's 360,000 tons. Total diesel exports for the year so far are up 247.1% on last year. Weakness in the country's property and merchandise export sectors, visible in recent data showing sharply contracting new construction starts and sliding sentiment in the manufacturing sector, has weighed on domestic diesel demand.
Gasoline exports rose 39.0% to 1.22 million tons from 880,000 tons in July last year. This is despite strong domestic demand for gasoline, which has picked up with the arrival of the summer travel season.
Domestic gasoline inventories fell around 3% between mid-June and mid-July, according to data from China-based consultancy Longzhong.
Jet fuel exports reached 1.47 million tons, up markedly from 480,000 tons a year earlier, though China-related international aviation traffic continues to trail a healthy domestic flight market. Sales of kerosene to international flights are included in this export figure.
China's total monthly refinery throughput reached the third highest level on record in July. Total fuel exports, which also includes marine bunker fuel, surged 55.8% on last year to reach 5.31 million tons in July, customs data previously showed.
We remind, China made a rare draw on crude oil inventories in July as imports softened and refinery processing remained elevated to meet rising domestic demand and a surge in refined fuel exports. Refiners used about 510,000 barrels per day (bpd) from stockpiles in July, the first time in 33 months that they had dipped into storages.