China's refined oil product inventory dropped in March from a month before, easing worries that record processing rates could stoke a fuel glut in the world's largest energy consumer. Fuel stocks in March fell 0.55 percent from February to 21.44 million tonnes, led by a hefty drop in diesel inventory, data provided by the official Xinhua News Agency showed on Thursday.
However, gasoline inventory rose 6.8 percent from February to 8.64 million tonnes. Crude oil inventory fell to 27.11 million tonnes in March from 27.77 million tonnes a month previously.
"Demand for diesel was firm, while gasoline demand showed weakness in the month," Xinhua said. Chinese refineries processed a record of more than 12.1 million barrels per day (bpd) of crude oil in March, boosted by ample government import quotas and steady margins. China's March gasoline and diesel exports, another barometer of oversupply in the market, also hit records in March.
Xinhua did not provide outright inventory volumes. The government rarely discloses levels of either commercial or strategic oil stocks, making it difficult to gauge real demand in the world's second-largest oil consumer.
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