China’s refinery output in May fell 10.9% from the same month a year ago, the sharpest annual drop in at least a decade, as strict Covid-19 lockdowns hit demand for fuel, they showed. data released this Wednesday (15).
Oil processing last month was 53.92 million tonnes, or about 12.7 million barrels per day (bpd), according to the country’s National Bureau of Statistics.
Production rose from 12.61 million bpd in April, the lowest level in two years, but was 1.55 million bpd below a year earlier, according to Reuters records of official data.
Processing volumes for the January-May period were down 5.3% on the year to 277.16 million tonnes, or 13.4 million bpd.
Some independent refiners increased production marginally last month after sharp cuts between February and April, and a number of large state-owned refiners also returned to activity following revisions.
But margins remained tight as demand stagnated.
“Our refining margins were negative and operations only started to recover slightly from the end of May, with some initial signs of easing of lockdowns,” said a commercial manager at an independent refinery.
China’s demand for refined petroleum products has been falling since March because of strict lockdowns to contain the spread of the Omicron variant under a zero Covid policy.
Gasoline and jet fuel are the hardest hit.
Data from the Chinese statistics bureau also showed a 3.6% increase in crude oil production to 17.57 million tonnes last month, or 4.14 million bpd.
Production in the first five months rose 4.1% year-on-year to 85.69 million tonnes, the biggest growth in a decade.
Source: CNN Brasil
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