China's Nov refinery output near record amid sturdy profit margins

China’s crude oil throughput in November rose 10.1% from the same month a year earlier, to the second-highest on record, as refineries in the world’s no. 2 oil consumer ramped up production amid steady profit margins.

Crude processing volumes reached 56.08 million tons, equivalent to about 13.65 million barrels per day (bpd), data released by the National Bureau of Statistics showed on Monday. That was a fraction below the record of 13.75 million bpd reached in September, and up from October’s 13.62 million bpd.

The robust throughput level came as China - the world’s top oil importer - brought in a record volume of imported crude last month at 11.13 million bpd.

Output was bolstered by new mega-refining complexes such as those of Hengli Petrochemical Co Ltd and Zhejiang Petroleum and Chemical Co, as well as higher runs at independent plants as they returned from maintenance outages.

“Margins have been supportive since October for independent plants, while state refiners also kept runs elevated as they moved more surplus barrels for exports where margins were also attractive,” said Seng Yick Tee, senior director at consultancy SIA Energy, speaking before the data was released.

For the first 11 months of the year, crude throughput rose 6.7% from a year earlier to 593.18 million tons, or about 12.96 million bpd, the data showed.

The statistics bureau data also showed China’s domestic crude oil output in November edged up 0.9% from a year earlier at 15.70 million tons, or about 3.82 million bpd. In the first 11 months of 2019, crude output climbed 1.0% from a year prior to 174.95 million tons.

Meanwhile natural gas production jumped 8.0% in November from the same month a year earlier to 15.1 billion cubic meters (bcm) as Beijing pressed ahead with plans to boost domestic supply.

Gas output rose for the first 11 months of 2019 by 9.2% to 157.5 bcm as national producers focused on stepping up development of the fuel, including shale gas projects in southwest China.

Gas demand for the whole of 2019 was expected to rise 9% from 2018 to exceed 300 bcm, though consumption this winter is expanding at only half the rate recorded the previous year due to a slower gasification push.