OREANDA-NEWS. August 22, 2012. China processed 37.6 million tons of crude oil in July, up 1.1 percent year-on-year but down from the six percent growth rate in the same period last year, the National Development and Reform Commission (NDRC) said.

Gasoline output rose 10.1 percent year-on-year to 7.45 million tons in July, while diesel production fell 0.4 percent on an annual basis to 13.88 million tons - the second decline this year.

China’s total oil processing volume in the first seven months reached 266.5 million tons, up 1.6 percent year-on-year but down from the 5.18 percent growth rate in the corresponding period the year prior.

Demand for oil products, particularly diesel, fell sharply due to the weakening domestic economy, Zhang Jing, an oil industry analyst at JYD Online, told Interfax on Tuesday. The analyst added that gasoline demand was supported by an increase in family car trips during the summer holiday period.

Zhang also said refineries trimmed output following three consecutive refined oil product price cuts between May and July.

Although small, the increase in crude processing output in July was up from a decline of 0.6 percent in June, indicating that demand could be recovering in anticipation of economic stimulus measures from the central government.

“Expectations of an economic recovery in the second half of the year could also encourage refineries to raise production,” noted Zhang.

Crude oil output in the first seven months of the year reached 117.7 million tons, an increase of 1.7 percent year-on-year but 3.48 percentage points lower than a year earlier, said the NDRC.