China's oil throughput in April is the lowest since August 20, 22. Inventories rise.

China's crude oil throughput in April fell to its lowest level?since August 20, 2022, according to official data released on Monday. The Iran war has curtailed refinery operations in the second largest oil consumer of the world.

The National Bureau of Statistics reported that the refinery's throughput dropped 5.8% compared to a year ago, falling to 54.65 millions metric tons or approximately 13.3 million barrels a day.

The data shows that the output in the first quarter of the year dropped by 0.5% to 238.95?million metric tonnes, or 14.54 millions bpd.

According to Chinese consultancy Oilchem, the average crude processing rate of Chinese refiners fell to?63.59%, down 4.7 points from one year ago and down 5.13 points from March.

Chinese independent refineries will likely deepen their cuts in May despite Beijing's encouragement to small refiners.

Chinese consultancy SCI stated in a report that Chinese refiners lost?649 Yuan per ton of crude oil processed in April, compared with a profit 269 Yuan one year prior.

In May, some smaller refiners were forced to close their plants due to maintenance.

Refiners in China increased gasoline and diesel production despite a decline in refinery operating rates. Oilchem reported that this, combined with the destruction of demand from higher oil costs, drove gasoline and diesel inventory higher.

"China barely used up crude inventories in the month of April as it only had to produce enough fuel to meet domestic demands due export restrictions that began around mid-March," explained?Emma Li at Vortexa, a ship tracking firm.

China's oil imports in April fell 20% on an annual basis to?38.47 millions tons or?9.36million barrels per day. This is the lowest level for almost four years. The decline was even greater than the drop in oil output.

Vortexa reports that China's onshore inventory level has also increased by 17 millions barrels.

Data also showed that April crude oil production was 17.94 million tonnes, or 4,37 million bpd. This is an increase of 1.2% on a year-on-year basis.

China's oil output in the first four months of this year was 72.74 millions tons or?4.43million bpd. This is a 0.5% decrease compared to?a previous year.

(ton = 7.3 barrels for crude oil conversion) (ton = 7.3 barrels when converted to crude oil) (Reporting and editing by Sam Li, Lewis Jackson)

(source: Reuters)