China’s Appetite for Oil Is Probably Bigger Than It Looks
- Official data indicates fuel demand fell 3.5% y/y in Jan.-July
- Surge in blending-fuel imports boosted actual demand: Unipec
Oil buying by Chinese refiners has played an outsized role in supporting global prices this year.
Photographer: Johannes Eisele/AFP via Getty Images
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A surge in Chinese buying of blending fuels this year means oil demand in the world’s biggest importer is likely bigger than the official figures indicate, according to the trading arm of refining giant Sinopec.
Chinese fuel consumption was already back at year-earlier levels in May, Fairy Wang Pei, head of the research and strategy department at Unipec, said at the Platts APPEC 2020 conference. However, purchases of light-cycle oil and mixed aromatics, which aren’t recorded in the crude import data, mean the nation’s demand recovery might be even more impressive than thought, she said.