• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 5 mins COVID 19 May Be Less Deadly Than Flu Study Finds
  • 48 mins Would bashing China solve all the problems of the United States
  • 5 hours 60 mph electric mopeds
  • 2 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 1 hour Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 6 hours China to Impose Dictatorship on Hong Kong
  • 59 mins Let’s Try This....
  • 1 hour HVDC Cheaper Than Low-carbon Natural Gas
  • 6 hours Nothing can shake AMLO’s fossil-fuel fixation
  • 11 hours Pompeo's Hong Kong
  • 1 hour Oil and Gas After COVID-19
  • 6 hours Iran's first oil tanker has arrived near Venezuela
  • 7 hours Natural gas is crushing wind and solar power
  • 7 hours New Aussie "big batteries"

China Refinery Runs Jump As Nation Emerges From Lockdown

Chinese refineries increased their run rates by 11 percent last month as the country began to emerge from the months-long lockdown prompted by the coronavirus outbreak that became a pandemic.

At 13.1 million bpd, the April run rates were also higher than the average for the same month in 2019, although by less than 1 percent, Reuters reported.

The news indicates a marked improvement in oil demand, at least from refineries in the world’s top oil importer. Even the four-month average for January to April was not much lower than the year-earlier period: that average was about 12.28 million bpd, according to Reuters calculations, down by 3.4 percent from the average for January to April 2019. Given the massive change in oil demand from a year ago, the reduction in run rates was indeed modest.

To compare, in February, at the height of the outbreak in China, refinery run rates fell to the lowest in six years, at some 10 million bpd. At the same time, refiners took advantage of the oil price rout to stock up on cheap oil while the rout lasted. 

Now, refinery runs are expected to continue to rise as industrial activity in China recovers to normal levels. Capacity utilization rates at independent refiners rose to 73 percent last month, according to data cited by Reuters, which was a record high. Meanwhile, at state refiners, utilization rates have increased to an average of 79 percent this month.

Refiners in China could use a pickup in oil demand for sure. Last year teapots added 900,000 bpd in new refining capacity, raising concerns about excess in that department. Total refining capacity on the world’s largest oil importer stood at 17.2 million bpd as of the end of 2019, and if refiners stick to their plans, it should continue rising.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Maxander on May 15 2020 said:
    China refinery data is a major indicator of what is going to be seen in rest of the lockdown majors like Americas, Europe, Emerging Asia ahead post lockdown exit.
    Even the China's coronavirus lockdown is followed by all big nations in same manner.

    So this is an eye opener for those who think that post coronavirus world will be too different. No. people wont & don't change their needs & people need same things to survive again n again. So the predicted change wontvhappen to that level predicted. Some little plus minus will be always seen.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News