China’s crude oil throughput during January and February of 2024 registered a 3% increase compared to the corresponding period in the previous year, driven by heightened refinery production to cater to strong demand for transportation fuels during the busy Lunar New Year travel season. Data released by the National Bureau of Statistics (NBS) on Monday revealed that total refinery throughput in the world’s second-largest oil consumer reached 118.76 million metric tons, equivalent to 14.45 million barrels per day.
To mitigate the impact of the Lunar New Year holidays falling in either January or February each year, China consolidates data for both months into a single report. However, Reuters’ calculations based on NBS’s online database indicated a year-on-year growth of 2.3%, with a daily increase of only 0.6% compared to February 2023, which had one fewer day.
The discrepancy in growth rates suggests a possible revision to last year’s figures by the agency, although NBS was not immediately available for comment on this matter. The rise in China’s crude imports by 5.1% during the first two months of the year, as per customs data released earlier in March, further underscores the robust fuel demand in the largest oil-importing nation globally.
The surge in travel activity during the holiday period in 2024, compared to the previous year, was notable. Domestic trips saw a significant increase of 34.3% from the previous year, totaling 474 million, according to data from the Ministry of Culture and Tourism. Additionally, international air travel experienced a substantial uptick, with inbound and outbound trips surging by 2.8 times from the corresponding holiday period in the previous year to reach 13.52 million, as reported by the National Immigration Administration.
Despite the resurgence in travel demand, independent refiners scaled back their refinery throughput due to narrowing margins, particularly evident in February. This adjustment placed a cap on the overall national output growth. JLC, a commodities consultancy based in China, estimated that independent refineries in Shandong province operated their crude units at an average capacity of 58.27% in February, marking a decrease of 4.91 percentage points from January and a decline of 9.6 percentage points from the previous year.