China’s refinery output declines

China's refinery throughput for the six months to June marked the first annual decline for the period since at least 2011, data showed on Friday, as strict Covid-19 restrictions and fuel export curbs dampened production.

For June, output was 54.94 million tonnes, according to data from the National Bureau of Statistics (NBS), bringing January-June processing volumes to 332.22 million tonnes or 13.4 million barrels per day (bpd), down 6 per cent from a year earlier.

The production in June was equivalent to 13.37 million bpd - up 5 per cent from 12.7 million bpd in May, but about 10 per cent below the all-time high of 14.8 million bpd reached in June 2021.

The month-on-month rebound came as some independent refiners began raising production late in May, after steep cuts between February and April, in response to a moderate pick-up in demand as some Covid-19 curbs were eased.

The return of Sinopec Corp's Yangzi and Hainan refineries from overhauls also contributed to the higher processing, though the state major had to close a 320,000-bpd plant in Shanghai due to a fire on June 18.

China's demand for refined oil products has been falling since March amid strict curbs to contain the spread of Covid, with gasoline and aviation fuel the worst hit.