China's crude oil stocks dropped to the lowest level in seven years in November, while diesel inventory fell to a one-year low, Xinhua data showed on Thursday. Crude oil stocks fell more than 3 percent month-on-month to 26.15 million tonnes in November. Refined products stocks fell to 16.52 million tonnes, led by a sharp drop in diesel inventory.

The sharp decline in both crude oil and refined products reflected stronger demand for diesel in the fourth quarter. Chinese oil refiners are churning out record amounts of fuel in the last quarter of 2017, as they look to exploit the best refining profits in nearly two years. Gasoline inventory rose to 8.2 million tonnes by the end of November from 7.9 million tonnes the previous month, while kerosene rose to 2.2 million tonnes.

China has stepped up exports of both diesel and gasoline in the fourth quarter as worries of excessive domestic supplies loom. November diesel exports jumped 38 percent in November to a record 2.03 million tonnes. Gasoline exports rose 11 percent to 1.04 million tonnes.

Copyright Reuters, 2017