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A Platts Data Analysis Shows China's April Oil Demand Jumps for First Time in Six Months

Posted on: Thursday, 21 May 2009, 12:41 CDT

HONG KONG, May 21 /PRNewswire-FirstCall/ -- Platts -- China consumed 31.47 million metric tons of oil in April, up a strong 4% from the corresponding month of 2008, a Platts analysis of official data showed May 21.

The data means Chinese demand showed its first year-on-year increase in six months last month.

The country's apparent oil demand for the January-April period was a cumulative 119.44 million metric tons, down 2.3% from the 122.28 million metric tons in the first four months of 2008.

The uptick in oil demand is the first sign from China, the world's second-biggest oil consumer after the US, that its massive economic stimulus plan and determined support for the manufacturing sector is restoring demand for core commodities like oil.

"April's implied oil demand from China is another signal to the markets that the first seedlings of a broad stabilization and recovery in oil demand are starting to poke through around the world," said Dave Ernsberger, Senior Editorial Director for Asia at Platts. "Much of the stabilization in oil markets, including steadier demand from China, has already been built into oil prices, which have already risen by a surprising 40% since mid-February. Traders in China report to us that growth in Chinese demand could be confirmed in months to come, thanks in part to anticipated stronger demand for gasoline and diesel in China this summer and higher crude oil processing thanks to the new 240,000 b/d Huizhou refinery and expanded Fujian refinery. Much will depend on how aggressively China allows gasoline and diesel prices to rise. The pressure for the government to raise prices around the country grows day by day, and sources say an increase could easily stifle the recovery that we are seeing."

MONTHLY TRADE DATA IN MILLION METRIC TONS: Apr'09 Apr'08 % Chg Mar'09 Feb'09 Jan'09 Dec'08 Nov'08 Net crude imports 15.81 14.01 +12.8 15.87 11.12 12.37 13.95 13.15 Crude Production 15.59 15.47 +0.8 15.82 14.32 15.91 15.71 15.86 Apparent demand 31.47 30.26 +4.00 31.26 27.91 28.63 28.79 27.93

Platts calculates China's apparent or implied oil demand on the basis of crude throughput volumes at the domestic refineries and net oil product imports, as reported by the General Administration of Customs and the National Bureau of Statistics. The government releases data on imports, exports, domestic crude production and refinery throughput data, but does not put out official figures on the country's actual oil consumption. Platts releases its monthly calculation of China's apparent demand between the 20th and 26th of every month via press release and via its website. Any use of this information must be appropriately attributed to Platts.

For more information on crude oil, visit the Platts website at www.platts.com. For Chinese-language information on oil and the energy and metals markets, visit http://www.platts.cn/.

About Platts: Platts, a division of The McGraw-Hill Companies (NYSE: MHP), is a leading global provider of energy and commodities information. With a century of business experience, Platts serves customers across more than 150 countries. An independent provider, Platts serves the oil, natural gas, electricity, emissions, nuclear power, coal, petrochemical, shipping, and metals markets from 17 offices worldwide. Platts' real-time news, pricing, analytical services and conferences help markets operate with transparency and efficiency. Traders, risk managers, analysts, and industry leaders depend upon Platts to help them make better trading and investment decisions. Additional information is available at http://www.platts.com.

About The McGraw-Hill Companies: Founded in 1888, The McGraw-Hill Companies is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2008 were $6.4 billion. Additional information is available at www.mcgraw-hill.com.

SOURCE Platts

Source: PR Newswire

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