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China refinery output reaches 16-month low on power crunch

China refinery output reaches 16-month low on power crunch

Throughput last month fell 2.6per cent from a year earlier to 56.07 million tonnes, or about 13.64 million barrels per day, National Bureau of Statistics (NBS) data showed on Monday.

September throughput was also lower than 13.74 million bpd in August, which was a 15-month low September throughput was also lower than 13.74 million bpd in August, which was a 15-month low

China's September daily crude processing rate fell to the lowest since May 2020, data showed on Monday, as feedstock shortage and environmental inspection crippled operations at refineries and a power crunch dampened refined oil demand from downstream users.

Throughput last month fell 2.6per cent from a year earlier to 56.07 million tonnes, or about 13.64 million barrels per day, National Bureau of Statistics (NBS) data showed on Monday.

September throughput was also lower than 13.74 million bpd in August, which was a 15-month low.

Throughput in the first nine months of the year was 526.87 million tonnes, up 6.2per cent on year, the data showed.
 
China has been suffering from its worst power crunch in years, with at least 17 regions across the country asking industrial plants to reduce production in order to lower power load, which cuts into demand for transportation fuels.

Meanwhile, independent refiners have faced tightening import quotas for crude oil, and the country’s environmental ministry has since early September carried out a fresh round of inspections in five provinces, including China’s oil refining hub of Shandong.