Chinese refineries processed 63.46 million tons of crude oil in August, according to the National Bureau of Statistics (NBS). This marks a 7.4% increase compared to the same month last year, Commerzbank commodity analyst Carsten Fritsch reports.
Second-Highest Monthly Volume in 17 Months
On a daily basis, this translates to just under 15 million barrels per day, making it the second-highest monthly processing volume in the past 17 months—only slightly behind June. From January to August, China processed a total of 488 million tons of crude oil, with an average daily volume of 14.7 million barrels.
Processing levels during this period were 3.3% higher than the same time last year. According to Oilchem, refinery utilization rose to 72% in August, up by 2.6 percentage points year-over-year.
Stockpiles Building Despite Higher Processing
Interestingly, even with increased refining activity, crude oil inventories still rose in August. The implied stock build was just over 1 million barrels per day, nearly double July’s level. This was due to a sharp increase in crude oil imports—alongside a slight uptick in domestic production.
From Decline to Demand Surge
Last year, both China’s crude oil processing and imports had declined. That trend has now reversed. The return of robust demand from China is helping to offset some of the oversupply in the global oil market, partly driven by rising OPEC+ production.
Outlook: How Long Can Demand Stay This Strong?
However, there’s still uncertainty. The implied inventory build suggests that current processing volumes may be outpacing actual domestic demand. The key question now is how long this strong buying and refining trend from China can last.