Diesel oil demand in China seems to be declining.
Diesel oil is the most intensive petroleum fuel in China. The country's diesel oil production is almost double of gasoline. Gasoline production is almost equal to diesel oil (gas oil + A fuel oil) in Japan. Middle distillate output in the U.S. is about half of gasoline.
Diesel oil is used for transportation, agriculture, fishery and electricity generation etc. in whole over China. The country's apparent diesel oil demand in February was 14 million ton, according to media reports. The volume rose only 5.2% higher than a year ago, while 5.1% lower from the previous month.
Number of days in February are less than January, but there was Lunar new year holidays in January.
China's diesel oil production during January and February was 478,000 ton per day, rose 0.8% from December, according to the National Bureau of Statistics.
Meanwhile, industry sources said that the country's diesel oil stocks as of the end of February rose 12.3% from a month ago.
Moreover, industry sources estimate that China's apparent diesel oil demand in March decreased by 6.4% from the previous month.
Since diesel oil consumption by farmers is very active in early spring, the lower demand suggests significant weak demand from transportation and industrial sectors.
The National Bureau of Statistics also announced earlier that China's January-February electric power generation was 719 billion kWh. The figures was 7.1% higher than a year ago, the first single digit year-on-year growth after 2009.
Recent energy consumption suggests that China's economic growth is slowing apparently. Is Chinese economy able to soft landing?