China March oil throughput falls as crude output hits record
China's refinery throughput fell 2.2 percent in March as Middle East supply risks curbed operations. Meanwhile, domestic crude production rose to a record high.
Refinery activity in China slowed in March as geopolitical risks in the Middle East, specifically involving Iran, impacted supply chains and processing rates. According to data from the National Bureau of Statistics on Thursday, the nation's crude oil throughput fell 2.2% year-on-year to 61.67 million metric tons, equivalent to approximately 14.52 million barrels per day. This decline comes despite a record-breaking performance in domestic crude extraction during the same period.
For the first quarter of the year, total throughput reached 184.31 million metric tons, a 1.1% increase compared to the previous year. However, utilization rates at refineries dropped significantly in March, falling to 68.79%. According to the consultancy firm Oilchem, this represented a 0.9 percentage point decrease from a year earlier and a sharper 4.47 percentage point drop from February levels.
The decline in utilisation rates reflected various factors including crude supply risks, the firm said in a report.
The production of refined oil products totaled 36.13 million tons in March, a 1.25% year-on-year decrease. Gasoline production fell by 2.95% to 13.51 million tons, and kerosene output saw the largest drop among major products, falling 3.72% to 5.13 million tons. Conversely, diesel output saw a slight rise of 0.88% to 17.49 million tons. These fluctuations in refinery output occur as global markets monitor the pricing of Brent Crude Oil amid ongoing regional instability.
While refining activity slowed, domestic crude production reached a historic milestone. Output in March rose 0.2% to 19.07 million tons, or 4.49 million barrels per day, marking a record high for a single month. Total production for the first three months of the year reached 54.8 million tons, marking a 1.3% increase over the same period in the prior year.
Energy production gains were also visible in the utilities sector. Natural Gas output climbed 3% in March to 23.4 billion cubic metres, bringing the year-to-date total to 68.1 billion cubic metres, which also represents a 3% increase year-on-year.
