Buyer Community> Trade Intelligence> Energy> UPDATE 1-China major fuel stocks up 3rd month in Jan-source
Source: Reuters

UPDATE 1-China major fuel stocks up 3rd month in Jan-source

Published: 21 Feb 2010 21:24:23 PST

* Jan refined fuel stocks at two oil majors up 3 pct

* Refined fuel sales down 6 pct on diesel demand slump

* Xinhua: Jan commercial crude storage at 26.80 mln tonnes

* Xinhua: Jan commercial fuel storage at 18 mln tonnes (Writes through with details, comments and table)

BEIJING, Feb 22 - Fuel stocks held by China's top two oil firms swelled in January as cold winter weather disrupted many oil-guzzling industrial and transportation activities.

Combined stocks of gasoline, diesel and kerosene held by China's top two oil companies rose by 3.0 percent in January from December as domestic sales dropped by 6.0 percent, an industry official with knowledge of the data told Reuters on Monday.

The rise in refined fuel inventories held by PetroChina and Sinopec was the third stock build after three consecutive months of decline.

"The stock rise is mainly because of some disruption of diesel-consuming users such as transportation firms due to the bad weather," the industry source said.

The data is also likely skewed due to some end-of-the-year factors, he added.

Gasoline stocks dropped 4.0 percent while diesel rose 7.0 percent, the source said, without giving specific levels.

Gasoline sales jumped 8.0 percent in January while diesel sales dropped 11.0 percent, the source said.

The source declined to be named as he was not authorised to speak to the media.

ROSY OUTLOOK

Diesel, the main source of the overall fuel sale declines in January, was much cheaper in December when its sales grew by around 13 percent, a Shanghai-based trader said.

"I think many end users took advantage of a good price in December to buy a lot diesel. So they had no rush to buy more in January when prices were higher while the long holiday was around the corner," the trader said.

But analysts are quite optimistic about China's oil demand in the coming months as spring nears and factories reopen.

State media reported that many of China's manufacturing and exporting hubs are facing severe labour shortages.

Robust car sales will keep gasoline demand at a high level. Sales of passenger cars came to 610,600 units last month, up 4.44 percent from December when 584,600 passenger cars were sold.

Results from Reuters' refinery surveys also reflect Chinese oil firms' rosy outlook about the world's second-largest oil user's oil demand this year.

Top Chinese refineries will process crude oil in February near the record levels seen last month and they will process 560,000 barrels per day more crude this year than 2009.

That is a bigger increase than last year, when the refiners processed almost 400,000 bpd more than in 2008.

XINHUA STATISTICS

Xinhua reported that Chinese oil firms built up 26.80 million tonnes of crude oil and 18 million tonnes of refined products as their commercial storage at the end of January.

It included 6.63 million tonnes of gasoline, 9.53 million tonnes of diesel and 1.62 million tonnes of kerosene, Xinhua said, citing statistics based on data it collected nationwide.

It did not give any growth rates.

These are in comparison with about 5 million tonnes of gasoline and 8 million tonnes of diesel held by the top two oil firms, according to calculation from historical data by the industry source.

Xinhua used to publish data on China's stockpiles of crude oil, gasoline and diesel through China OGP, an oil industry newsletter it runs.

But OGP stopped the data from November without giving a reason.

The data in Xinhua's OGP newsletter, which was sourced from state oil firm CNPC, goes back to January 2008. But it radically revised historical diesel and gasoline figures in July, causing many analysts to reassess their calculations..

Xinhua said that it will start releasing commercial crude and fuel stockpile data in the middle or late days of every month through the Xinhua 08 System.

None of China's government departments publishes official oil stock data.

The other chief source of information on commercial fuel stocks is the China Petroleum and Chemical Industry Association (CPCIA), which does not issue data publicly and does not cover crude oil or strategic reserves.

The data obtained by Reuters are the same with CPCIA.

Following is a table of Chinese major fuel stocks from the China Petroleum and Chemical Industry Association and industry sources (growth for month on month rate in percent and level in million tonnes): -------------------------INVENTORY-----------------------

gasoline diesel refined fuel MONTH growth level growth level growth level Dec08 ~ ~ ~ ~ ~ 12.7 Jan09 ~ ~ ~ ~ ~ 12.8 Feb09 ~ ~ ~ ~ 11.4 14.9 Mar09 ~ ~ 14.7 ~ -6.13 13.9 Apr09 -5.3 ~ -21.6 ~ -15.4 11.6 May09 12.3 5.4 -4.9 6.3 2.1 ~ Jun09 7.6 ~ 1.4 ~ 4.7 ~ Jul09 -1.2 ~ 15.7 ~ 7.5 ~ Aug09 -9.7 ~ -5.9 ~ -7.4 12.5 Sep09 -3.1 5.0 1.1 7.1 -0.2 12.5 Oct09 1.6 ~ -10.1 ~ -5.0 ~ Nov09 -1.6 ~ 11.2 ~ 5.3 ~ Dec09 1.7 ~ 4.5 ~ 2.4 ~ Jan10 -4.0 ~ 7.0 ~ 3.0 ~ ----------------------------SALES------------------------

gasoline diesel refined fuel MONTH growth level growth level growth level Feb09 ~ ~ 18.5 ~ 9.8 ~ Mar09 ~ ~ 21.0 ~ 13.0 17.04 Apr09 6.6 ~ 7.4 ~ 5.2 17.34 May09 ~ ~ ~ ~ 2.3 18.33 Jun09 4.2 ~ 4.7 ~ 5.9 18.80 Jul09 -6.2 ~ -12.0 ~ -10.5 ~ Aug09 7.4 5.9 8.6 12.0 8.1 18.80 Sep09 -5.1 5.4 1.6 11.7 -0.5 18.00 Oct09 3.7 5.8 2.2 12.4 2.6 ~ Nov09 -4.8 5.3 -2.7 11.7 -2.6 18.00 Dec09 2.4 5.5 12.9 13.2 8.7 19.00 Jan10 8.0 ~ -11.0 ~ -6.0 18.50 (Editing by Jacqueline Wong)

Share this post:
Related Article
Most Popular
icbu-news011134160146