China’s oil demand rose 6.6 percent year over year in October to 41.28 million metric tons, or an average 9.76 million barrels per day, confirming the broader trend that the Chinese economy has bottomed out.
According to Platts, October demand was slightly lower than the record 9.8 million b/d in September and the 9.77 million b/d seen in February this year.
“We continued to see strong growth in apparent oil demand in October, particularly after the lackluster performance from June to August when demand contracted by about 0.3 percent year over year,” said Song Yen Ling, Platts senior writer for China. “Most analysts now believe China’s economy is on the mend and we should see a corresponding improvement in oil demand going into next year.”
Platts said that the China’s oil demand in October continued to be sustained by a recovery in economic growth. In September, demand had risen 9.1 percent year over year, a rebound from the 1.5 percent contraction in August to 8.95 million b/d, the lowest since September 2011.