China's inventories of gasoline, gasoil and kerosene rebounded month-on-month in May, show the data from China National Petroleum Corporation. The country's gasoline inventories climbed 1% to about 35 days of consumption volume, gasoil stockpiles went up by 3% to around 24 days of consumption volume and kerosene stocks gain 8%.
Gasoil and gasoline stockpiles increased as speculative demand was dampened after international crude dropped in early May, C1 found. Furthermore, domestic major refineries' average operation rate in May was the second highest this year, only second to that in January. Meanwhile, both PetroChina and Sinopec kept gasoil and gasoline exports at very low levels, in a bid to ensure domestic supply.
The country's distillate stockpiles may grow moderately again in June, since gasoil and gasoline demand has been depressed by heavy rain in some regions. Gasoil demand from the fishing industry has also shrunk amid official suspension of fishing this month.
