China's oil product inventories at the end of August declined by 1.1% month on month, showed the data released by China National Petroleum Corporation.
Gasoline stockpiles dropped by about 1.2% to a level equal to around 30 days of consumption and gasoil stockpiles fell by 1.7% to a level sufficient for about 21 days of consumption, but kerosene stocks went up by 2.6%, according to the data.
Gasoil and gasoline stocks dropped after major refineries cut production amid low run rates, C1 found. The average run rate was low at about 80% in the month because of maintenance.
In addition, gasoil demand from fishing increased slightly as fishing was officially resumed in South China Sea and demand from agriculture also gained moderately in some areas.
In the meantime, domestic jet stockpiles grew since domestic refineries increased kerosene production after their production margins were pushed up by the new jet pricing mechanism.
