OREANDA-NEWS. December 07, 2011. Industry experts estimate that China's October oil demand rose on a year-over-year basis by 1.4% to 38.42 million metric tons (mt) or an average of 9.08 million barrels per day (b/d), the highest in five months.

According to a newly-released Platts analysis of recent statistics released by China's government, the apparent oil demand in October was the strongest since 9.31 million b/d in May, and was also 1.4% higher than September when apparent oil demand was 8.95 million b/d.

Chinese national oil companies were found to have boosted production of refined products and bumped up imports amid signs of tightening supply in certain parts of the country from early October.

"The country's two oil majors have been restocking diesel as the companies have reportedly been told by the government to ensure that there is adequate supply of diesel during the autumn harvesting season," said Calvin Lee, Platts senior writer, China.

He added that, last month, the country's refineries processed a combined 37.1 million mt of crude oil, or an average of 8.77 million b/d, as refiners boosted crude runs due to the end of scheduled
maintenance and to meet a domestic shortage of diesel.

The report revealed that not only did diesel production increase in October, but Chinese companies also increased diesel imports. China's refined oil product imports rose by 7% year on year to 2.91 million, while oil product exports fell 15.4% to 1.59 million mt - the lowest since January 2009.

"Crude throughput and oil product imports are expected to increase further in November as pre-booked oil product shipments arrive from overseas and given that most of the refineries will have resumed normal operations following completion of their post-maintenance turnarounds," explained Lee.