SHANGHAI, Aug 21 — China’s diesel exports rebounded to a record in July as severe flooding in some parts of the country curbed domestic fuel demand.
The world’s largest energy consumer exported 1.53 million tons of diesel last month, a 39 per cent jump from June and beating the previous record in May, according to data posted today on the website of the General Administration of Customs. While outbound gasoline shipments in July slipped from a record the previous month, they more than doubled from last year to 970,000 tons.
China’s worst flooding since 1998 will reduce the nation’s oil demand by as much as 10 per cent in July and August, Morgan Stanley analysts including Adam Longson said in a report earlier this month. The floods caused about US$33 billion (RM132.4 billion) in economic losses last month, according to London-based insurance broker Aon Plc.
“Heavier-than-usual flooding starting from June has markedly damped road transportation and construction,” Lin Jiaxin, an analyst with ICIS China, said before the data were released. “Refiners had to ship excess fuels overseas to lower stockpiles.”
Gasoline shipments slowed as the nation’s output growth in July was the weakest since Feb. 2015. Production rose 1.6 per cent from a year ago to 10.54 million tons last month, compared with June’s increase of 8.7 per cent, according to data released Wednesday by the National Bureau of Statistics. Refineries may be slowing production as domestic demand for the motor fuel is weaker than expected, which may put a lid on gasoline exports, Lin said.
Kerosene exports rose to a seven-month high of 1.09 million tons. Liquefied natural gas imports fell 16.4 per cent from the previous year to 1.6 million tons. — Bloomberg
