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The rising diesel demand may limit fuel oil export growth in the world's second-largest oil-consuming country and support Asia's near-eight-month high benchmark diesel profit margin.
Seri Paravikarasu, head of energy consultancy FGE "East Suez Oil", said China's diesel demand is expected to increase by 0.3% and 0.5% this year and next year after a 3.5% decline last year.
Paravikarasu said, “The various factors – the improvement of mining and industrial activities, the increase in commercial vehicle sales and road freight – support the gradual recovery of demand for China (diesel).â€
Diesel, which accounts for about 30% of China's oil demand, is mainly used to fuel trucks and mining and construction equipment in China.
Li Jun compiled from Reuters
The original is as follows:
China Diesel Demand Expected To Return To Growth As Economy
Chinese demand for diesel will rise again this year after co ntracting for the first time in over a decade in 2016, buoyed as the world's No.2 eco nomy shows signs of growth, traders and analysts said.
That could cap increases in exports of the fuel from the world's second-biggest oil consumer, while bolstering benchmark Asian diesel margins already near 8-mo nth highs.
Diesel demand in China is expected to grow by up to 0.3 percent in 2017 and by 0.5 percent in 2018 after shrinking by 3.5 percent last year, said Sri Paravaikkarasu, the head of 'east of Suez oil' at energy co nsultancy FGE.
"A variety of factors - improvement in mining and industrial activity, commercial vehicle sales and road freight movements - support a gradual revival in China's (diesel) demand," she said.
Diesel, which accounts for a bout 30 percent of China's appetite for petroleum, is largely used in the country to fuel trucks, along with mining and co nstruction equipment.
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Reuters: China's demand for diesel may rise again this year
According to a Reuters report on July 28 in Singapore, traders and analysts said that as the world's second-largest economy shows signs of economic growth, China's demand for diesel will rise again this year after shrinking for the first time in 2016.