BEIJING: China's implied oil demand rose 4.9 percent in February from a year ago to the fourth highest level on record despite a holiday lull that pulled apparent consumption down from the third-highest posting on record in January.
China consumed roughly 10.14 million barrels per day (bpd) of oil last month, according to Reuters' calculations based on preliminary government data.
February's growth rate, however, was the slowest since September, partly because of a high base a year ago, when demand hit its second-highest on record to that point.
Fuel demand in China, a key driver for global oil markets for more than a decade, rose at its slowest rate in four years in 2012 as the world's second-largest economy expanded less rapidly. Demand started to recover modestly from late last year amid signs of the economy regaining strength.
Implied, or apparent demand, is a combination of crude oil processed and net imports of refined products. It ignores inventory changes, which are rarely disclosed by the government.
Weaker February demand was also in part due to a nearly 34-percent fall year-on-year in net fuel imports to around 295,000 bpd, as oil firms shipped surplus fuels, mainly diesel, overseas as domestic supply outpaced demand.
"Chinese refiners likely continued to export gasoline and diesel as the fuel market remained well supplied during the holiday season," wrote Cheng Sijing, commodities analyst with Barclays, in a clients' note on Friday.
On a daily basis, China's crude throughput rose 6 percent last month versus a year earlier to 9.84 million bpd, data from the National Statistical Bureau showed, as major oil firms Sinopec Corp and PetroChina operated new refineries at high rates amid steady margins, despite easing demand as factories shut for up to two weeks for the Lunar New Year holiday.
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