China Oct oil demand up 2.4 pct amid shortage

BEIJING, Nov 22 (Reuters) – China’s apparent oil demand rose a tepid 2.4 percent in October on a year ago, as record global crude prices led to diesel shortages, but demand should pick up further as Beijing has ordered firms to boost output and imports.

The yawning gap between global oil markets (CLc1: Quote, Profile, Research), now racing toward $100 a barrel, and capped domestic pump rates has forced Chinese refiners to cut processing to stem losses, sparking a widespread shortage of diesel since early October.


Oil demand growth last month recovered from September’s near-halt to 6.8 million barrels per day (bpd), Reuters calculations from official figures showed. But on a daily basis, October demand was 100,000 barrels below September’s level.

Rationing of main transport fuel diesel, which started in the booming east before spreading to inland regions in the worst shortage since 2003, forced Beijing to announce a surprise 10 percent increase in gasoline and diesel prices from November.

Reuters