China's 2024 refining output is expected to decline by a rare amount due to weak demand
China's oil refining throughput in the year 2024 will be the lowest in over two decades, barring 2022 when the world was hit by the pandemic. Plants have reduced production in response to stagnant demand for fuel and low margins.
National Bureau of Statistics data showed that the world's second largest refining industry, after the U.S., processed 1.6% less crude last year.
Calculations showed that the figure is about 14.13 millions barrels per day. This was down from a record of 14.7 million bpd in 2023.
Last year, refiners were under pressure to limit or reduce processing rates. The electrification of the automobile industry reduced gasoline demand. Meanwhile, a prolonged real estate crisis and weak merchandise exports lowered diesel fuel use.
The data released on Friday showed that throughput in December was up 0.6% compared to the same month last year, reaching 59.35 millions tons or 13.98 millions bpd.
In 2024, China produced 1.8% more crude oil at home than a year earlier. This equates to 4.24 million barrels per day. This was only a few thousand bpd short of the all-time record of 4.3 millions bpd set in 2015.
The December production, which was 17.9 million tonnes, increased by 1.4% compared to the same period last year.
Data also revealed that natural gas production increased 6.2% to 246.4 billion cubic meters, a new record. State oil firms increased output in top basins onshore Sichuan as well offshore reservoirs of the South China Sea.
(source: Reuters)
