Singapore — China's social distributor stocks of gasoline and gasoil at the end of July were about 670,658 mt, down 5% from the end of June, according to S&P Global Platts calculations based on data provided by JLC, a Chinese information provider.
This was the first month-on-month decline after four consecutive rises since March.
Social distributor gasoline stocks were estimated at 303,316 mt at the end of July, accounting for around 23.8% of the total storage capacity of about 1.72 million cu m, and down 3.9% from the end of June, Platts calculations showed.
Social distributor gasoil stocks were estimated at 367,341 mt at the end of July, accounting for around 24.4% of the total storage capacity of 1.78 million cu m, and down 5.9% month on month, according to Platts calculations.
In line with lower international crude oil prices in the second half July, China adjusted down its guidance retail prices for both gasoline and gasoil by Yuan 125/mt ($18.40/mt) and Yuan 120/mt, respectively, starting from July 23.
Besides, gasoil demand remained weak in July as outdoor projects and transportation were still partially affected by the hot and rainy weather during summer.
These were believed to have discouraged social distributors to hold high inventories, market sources said.
"Some social distributors took a wait-and-see stance. They mainly consumed the existing inventories instead of building up stocks in the second half of July," one of the market sources said.
The data provided by JLC covers 64 distributors with oil storage capacity of 3.51 million cu m in 21 provinces -- 1.72 million cu m for gasoline and 1.78 million cu m for gasoil.
Social distributor stocks are defined by JLC as inventory at distributors' storage facilities, excluding stocks held at refineries as well as those held by refineries at distributors' storage facilities.
