China refined the most crude oil in nearly two years in June, as plants returned from seasonal maintenance to seize on better margins for fuels like diesel.
The uptick followed refineries resuming operations post-maintenance, capitalizing on stronger fuel profit margins, particularly for diesel. Amy Sun, an analyst at GL Consulting, stated: “Improved margins and fewer idled units supported robust refining activity, with further strength expected this month as new plants come online.” Diesel profitability at independent refiners hit nearly $18 per barrel late last month, the highest since 2023, per JLC International. State-owned refineries ran at nearly 84% capacity by June’s end, the highest in over three months.
Refining growth matched increased crude purchases, which hit a daily peak not seen since August 2023. Energy Aspects noted plans to add up to 140 million barrels to China’s Strategic Petroleum Reserves later this year, driving further import growth.
The strong refining performance supports China’s energy demands, with new facilities expected to enhance efficiency and sustain economic growth.
