China’s oil refinery throughput increased in March, reflecting a proactive response from refiners amid signs of a tentative economic recovery in the world’s second-largest consumer of crude. Data from the National Bureau of Statistics (NBS) revealed a total refinery throughput of 63.78 million metric tons, equivalent to 15.09 million barrels per day (bpd), marking a notable rise from the January-February period.
The 1.3% increase in run rates compared to last March’s figures, which set a record at the time, reflects refiners’ efforts to stockpile fuel ahead of scheduled maintenance. Despite a 6.23% decline in crude imports in March, China’s economy exhibited resilience, with a 5.3% growth in the first quarter, surpassing analysts’ expectations and signaling positive momentum.
Amid a protracted property crunch, manufacturing activity exceeded expectations, as evidenced by the expansion of the official manufacturing purchasing managers’ index (PMI) for the first time in six months. Additionally, domestic transport fuel demand received a boost from the Qingming festival travel period in early April, with a significant increase in car trips.
However, sluggish diesel demand, attributed to weaknesses in the mining and infrastructure construction sector, has limited the full potential of refinery runs. Despite this, China’s crude oil production in March rose by 1.2% from the previous year to 18.37 million tons, marking the highest level since June 2015. The country’s continued investment in domestic production aims to offset the decline in output that began in 2015.
Furthermore, natural gas production in China grew by 4.5% to reach a record 21.6 billion cubic meters, reflecting the country’s ongoing efforts to enhance energy production and meet growing demand.