• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 8 hours The United States produced more crude oil than any nation, at any time.
  • 6 days e-truck insanity
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 5 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 4 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 6 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 6 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 9 days Bankruptcy in the Industry

Lockdowns Lead To Major Decline in China's Refining Output

Strict lockdowns in Shanghai and the resulting depressed fuel demand led in May to the largest annual decline in Chinese refinery production in at least the past decade, official data cited by Reuters showed on Wednesday.

Last month, Chinese refiners processed around 12.7 million barrels per day (bpd) of crude oil, down by 10.9 percent compared to May 2021, according to data from the Chinese National Bureau of Statistics. Refinery throughput was marginally higher compared to the April processing rate of 12.61 million bpd, but the April refinery output was also low by Chinese standards.   

Weak fuel demand amid strict lockdowns with China's "zero COVID" policy was behind the largest annual plunge in at least a decade in May.

Refining operations started to recover at the end of last month, when China announced a gradual easing of the lockdowns in Shanghai and Beijing. However, flare-ups since early June have prompted authorities to impose fresh curbs on mobility, in a sign that China's oil demand recovery will not be smooth.

A new "explosive" outbreak in a Beijing district is threatening the demand growth recovery again this week.

Last week, a return to lockdowns in Shanghai weighed on oil prices, suggesting it may be a while yet before the Chinese economy returns to normal. On the flip side, news that China's oil imports in May were 12 percent higher than a year earlier could potentially lend support to prices, although they may not be indicative of an actual demand increase.

"The easing of Covid-related restrictions in China should have provided a further boost to sentiment in the market. However, a flare-up of cases in Beijing and Shanghai more recently has seen authorities tighten restrictions once again. China's covid zero policy remains a downside risk for the market," ING strategists Warren Patterson and Wenyu Yao wrote on Tuesday.

By Tsvetana Paraskova for Oilprice.com


More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News