Chinese Gasoil Consumption to Shrink During CNY
In normal years, the Chinese gasoline consumption increased to a high level around the Chinese New Year, as hundreds of millions of people went back to their hometown from working places and people’s holiday travelling peaked during the Chinese New Year. But meanwhile, the Chinese gasoil consumption often dropped to a low level around the Chinese New Year, as most construction companies, mining companies and logistic companies had holidays during that period. But things were different in 2020, impacted by the outbreak of COVID-19. The 2020 Chinese New Year is coming soon, and unexpected issues are also bringing new features to Chinese gasoil and gasoline consumption during the Chinese New Year in February 2021.
Restrictions in 2021 are different from 2020. From January 2021, some new cases of COVID-19 were reported, but most of them were in Hebei, Heilongjiang and Jilin. The gasoil and gasoline consumption is only influenced in some specific cities. The local demand reduction will not change the uptrend of Chinese total demand. According to official statistics, in December 2020, Chinese automobile output and sales reached 2.84 million and 2.83 million respectively, up 5.7% and 6.4% on a year-on-year basis. Meanwhile, a total of 26 provinces reported their GDP growth, and only Hubei Province had negative GDP growth. The economic recovery is supporting the Chinese gasoil and gasoline consumption growth, and local restrictions are only influencing the products’ transportation. The independent refineries in Shandong and Northeast China have some products for the southern China recently.
