Chinese demand growth falters

摘要

Demand growth in the emerging economies is slowing, as oil sales in China and Latin America dip below a year earlier. Strong growth persists in India, where demand is 10pc up on this time last year, and remains steady in other parts of non-OECD Asia-Pacific. But margins in Singapore have come under pressure as higher refinery operating rates have boosted product supplies. Chinese economic growth has slowed to under 7pc this year, dampening oil demand. Apparent products demand - refinery runs plus net products imports - increased by 1.7pc in the first six months of this year, down from a year-on-year increase of over 7pc in the first half of 2015. Preliminary data show demand in July-August 1.5pc lower than a year earlier, partly reflecting enforced plant shutdowns to improve air quality during the G20 summit. Recent government investment in new infrastructure projects may support diesel demand, but heavy manufacturing industry is still contracting as the economy shifts to services and light industry.