China’s oil demand growth strengthens in April

China’s implied demand for oil rose a modest 3.9 percent in April despite record high crude imports, picking up from March growth levels but still well below expectations for the full year, official data showed on Friday.

Strong demand for fuel oil was the main driver of growth, as a surge in gasoline flows overseas suggested domestic drivers who are snapping up cars are not taking them onto the roads.
Spring planting season normally offers support for diesel as farmers start up their tractors, but demand growth for the transport fuel was down slightly from a month earlier.

Instead, kerosene consumption rose ahead of the week-long May Day holiday, when planes are usually filled as holiday-makers shuttle around the country.

Overall China’s implied demand – net imports plus refinery output, but excluding inventory changes, which are not reported – was 7.00 million barrels per day (bpd) in April, Reuters calculations showed.

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