China's oil refining profit margin rose in August and oil volume hit a new high

China's refinery profit margin rebounded in August and new plant capacity increased. Affected by this, domestic refinery output in August increased by 6.9% compared with the same period in the previous year, reaching a new monthly high. According to the data of the National Bureau of Statistics, the total amount of refineries rose to 54 million tons last month, with a daily refining capacity of about 12.72 million barrels.

The daily crude oil extraction volume in August was higher than 12.39 million barrels in July and lower than 13.07 million barrels in June.

According to the head of the relevant refineries, since July this year, refineries mainly located in Shandong Province have managed to turn losses into profits. Refining profit margins were supported by rising domestic fuel prices and massive exports, as well as some production cuts in June. The refinery did well in July and August, with profits ranging from 200 to 300 yuan per ton, said a business executive.

As Zhejiang Refinery enhances its production capacity and enters the fourth quarter, it may face some uncertainties, insiders said. This refers to the 400,000 barrels per day refinery that was put into operation in Zhoushan, Zhejiang Province, at the end of May.

The National Bureau of Statistics reported that in the first eight months of 2019, the total amount of crude oil refined in China increased by 5.9% year-on-year to 424.16 million tons, or about 12.74 million barrels per day. Correspondingly, China's domestic crude oil production in August increased by 1% year-on-year to 16.18 million tons, with a daily output of about 3.81 million barrels. The daily output in July was about 3.84 million barrels. In the first eight months, crude oil production increased by 1% over the same period last year, with a production of 12749 million tons. The Shengli Oilfield in eastern China and Liaohe Oilfield in northeastern China suffered some losses last month due to weather factors such as typhoons and rainstorms. Data show that natural gas production reached 13.8 billion cubic meters last month, an increase of 6.6% over the same period last year. From January to August this year, China's natural gas production reached 114.1 billion cubic meters, an increase of 9.3% over the same period last year. Natural gas production has maintained a strong momentum, and its dependence on imported natural gas has decreased. In the area of shale gas, China has increased its shale gas exploration activities for complex geological formations.

Responsible Editor: Li Xiang 1