The higher runs came as independent plants rushed to boost output with newly granted quotas and as a greenfield state refinery raised production after test operations. For the first eight months of the year, refinery output was up 3.4 percent from the same period a year ago at 367.94 million tonnes, or 11.05 million bpd.
Independent plants rushed to purchase crude oil after receiving a new batch of crude oil quotas from late June. PetroChina's 260,000 bpd refinery in southwestern Yunnan also contributed to higher throughput after test runs started in end-June. Thursday's data also showed China's domestic crude oil output fell 3.1 percent last month from a year ago to 15.96 million tonnes, or 3.76 million bpd. Output during the January-August period was down 4.6 from a year earlier, but the decline has since late 2016 narrowed sharply as positive cash flows encouraged dominant state oil firms to expand productions.
Copyright Reuters, 2017