A Glance of China Oil Market 20260511

On the demand end, the gasoline demand is projected to fall to normal levels post Labor Day holiday, while the gasoil demand will likely improve thanks to promotions allowed by high retail margins as well as removal of transportation restrictions post the holiday.

A Glance of China Oil Market 20260511

Weekly News

China May gasoil demand to keep contracting YoY

Despite a seasonal recovery in May, China's gasoil production and consumption are both expected to keep contracting compared with the same period last year amidst sustained substitution of alternative energy, according to OilChem's survey. In detail, China's daily gasoil consumption is estimated at around 538,700 tonnes/day in May, rising 7.74% month-on-month (MoM) but down 7.46% year-on-year (YoY), OilChem's data showed. While the gasoil demand continues its seasonal recovery from previous constrains of high prices, the influence of alternative energy sources remains beyond typical levels, resulting in a significant year-on-year decline in gasoil consumption. Read Full Story

China May gasoline demand to contract over 10% YoY

China's daily gasoline consumption in May is projected to fall over 10% compared with the same period last year, partly due to high prices constraining the downstream demand, aside sustained substitution of electric vehicles, according to OilChem's data. In detail, China's gasoline demand is estimated at around 390,300 tonnes/day in May, rising 6.56% from April but down 10.71% from last May, based on OilChem's analysis. Entering May, the gas stations have launched sales promotions on the backdrop of sound retail margins, easing the constraints on the demand end caused by high prices. Read Full Story

UAE's OPEC+ Exit: Is the Era of 'Great Coordination' in Oil Supply Over?

The chronic friction between the UAE and OPEC's core members (especially Saudi Arabia) is rooted in the fundamental conflict between its massive capacity investments and the production cut constraints of OPEC+. In recent years, the UAE has poured tens of billions of dollars into expanding its oil and gas capacity, aiming to boost crude production capacity to 5 million barrels per day by 2027. However, under the collective output cut framework of OPEC+, its production has long been capped at 3 to 3.5 million bpd, leaving a vast amount of converted spare capacity unable to be into actual revenue and strategic leverage. Read Full Story