China's implied oil demand rose 9.2 percent in August, easing off four months of double-digit growth but still serving a reminder that one key factor behind oil's near four-year rally has yet to fade.
Growing domestic refinery output and the likelihood of Beijing keeping fuel prices little changed amid falling crude may continue to prop up demand, analysts say, helping the world's number-two consumer beat forecasts of 6 percent growth.
Supported by a warm summer and strong economy, implied oil product demand -- refinery output plus net fuel imports but excluding inventory changes which China does not report -- was 6.55 million barrels per day (bpd) in August, Reuters calculations based on official data showed.
The economy, which has shown few signs of slowing down, should support oil demand throughout the fourth quarter.
This could serve a piece of good news to an market desperate for proof of demand growth, after oil lost more than $17 since early August in its biggest decline in over 15 years, amid easing concerns over Iran and a mild hurricane season.
China's surprise 15 percent fuel demand growth in 2004 was one main driver behind oil's rally to $70, before it eased to just above 3 percent last year but quickened since the second quarter of 2006.
Economic indicators pointed to easing but still robust growth in industrial output and fixed-asset investment last month, after the world's fourth-largest economy expanded 11.3 percent in the second quarter.
Leading the August demand growth was gasoline and fuel oil, up 14 percent and 24 percent respectively, though trade sources say some of the barrels may end up in dealers' storage tanks.
State refiners slashed exports of gasoline by 63 percent in August, extending a year-long theme, in order to fuel the country's fast-expanding fleet of cars, sales of which rose 29 percent in August and 32 percent in the first eight months.
Lured by an attractive margin to process fuel oil into much-needed diesel, China raised fuel oil imports sharply for the fourth-straight month by 56 percent at 3.06 million tonnes.
Imports of kerosene, mainly aviation fuel, neared peak levels in August at about 557,000 tonnes and were up 89 percent in the January-August period at 3.49 million tonnes as refiners maximized production of diesel at the expense of kerosene.
Source:佚名