Oil exports from China are climbing higher in the face of weakening domestic demand at one of the world’s largest energy consumers on account of the coronavirus outbreak and the shutdowns. According to research by China National Petroleum Corp (CNPC), China’s demand for refined oil products is expected to decline by 35.7% in Q1 2020, generating a surplus of 27.8 million tons in the region.
Refined oil products’ exports from China have surged to 156k tons/day from 139k tons/day from the same period one year ago. Overall exports of oil products from China are expected to rise by 3.9% YoY or 58k bpd in the first quarter of this year.
Gasoil exports from China are expected to touch 2.2 million tons in February, significantly higher than the 1.335 million tons exported in the previous month. The reigning travel restrictions as well as lockdowns of factories and workplaces across China are driving the continued weakness in domestic oil demand, and will only recover once the virus is successfully contained.