China refined oil inventory drawdown expected in Apr-May

China's refined oil inventories are projected to decline significantly through April and May 2026, driven by a seasonal demand surge and tightened supply due to lower refining utilization. Gasoline and gasoil stocks are expected to drop by 1.3 million and 2.65 million tonnes, respectively, as travel increases and construction resumes, despite ongoing geopolitical risks.

According to OilChem's data, China's domestic refineries' CDU capacity utilization rates have continued to decline since the geopolitical conflicts in the Middle East. In the week ending March 26, the CDU capacity utilization rates of China's state-owned refineries averaged 71.99%, down 10.18 percentage points from February 26. The utilization rates