China Increases Local Oil Output as Consumption Grows

China’s crude oil production increased only 0.6 percent year on year to 17.24 million metric tons in July as the current economic slowdown dampened fuel demand in the country, according to data released by the National Development and Reform Commission (NDRC) on Monday.

Chinese oil producers refined 34.16 million metric tons of crude oil, up 1.5 percent year on year, but oil product output increased 4 percent from a year earlier to 21.46 million metric tons, said the NDRC, China’s top economic planner.

Meanwhile, the country’s consumption of refined oil grew 4.4 percent to 21.86 million metric tons.

The pickup in July failed to make up for a decline in China’s domestic crude oil production during the first half of this year, underlying the country’s increasing dependence on imports to meet its domestic demand, according to the NDRC data.

The country’s crude oil production in the January-July period reached 117.35 million metric tons, down 1.3 percent year on year. Its crude oil imports grew 10.2 percent to 161.9 million metric tons in the first seven months, showed customs data.

via Xinhua

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza