Published By : 03 Nov 2015 | Published By : QYRESEARCH
China’s state owned oil giants PetroChina and Sinopec reported a tepid 0.70 per cent or 1.73 million metric ton increase in domestic sales of their oil products in the first nine months of this year. However, during the same period, exports jumped by an impressive 12 per cent or 2.59 million metric tons, according to Platts calculations that were based on results recently released by the two oil companies.
Both the companies together account for a whopping 85 per cent share of the domestic market in China and the data revealed underscores China’s softness in oil demand. It also illustrated how refiners are increasing exports in order to bring down rising stocks.
The domestic sales of oil products by Sinopec went up 0.8 per cent year on year to reach 126.71 million metric tons during the January to September period. Exports, on the other hand, reported a rise of 12.40 per cent to settle at 14.04 million metric tons, according to the third quarter report released by the company last week. Overall sales amounted to 140.75 million metric tons, which rose by 1.90 per cent.
PetroChina’s jet/kerosene, gasoline, and gasoil sales, in comparison, went up 1.50 per cent year on year to reach 119.3 million metric tons, based on a report that was released by the company last week.
PetroChina does not divide its sales between domestic and export segment, but based on Platts calculations, the firm sold about 109.54 million metric tons of these oil products to the domestic market. The three products reported a 0.6 per cent rise in domestic sales compared to last year, but exports went up by a remarkable 12 per cent to settle at 9.76 million metric tons.
In a press release, PetroChina said that the hurdles in the domestic gas and oil market such as difference between sales and production and oversupply will not change.