China's oil processing rose to a record high last month after refiners increased production to ease a domestic fuel shortage. Plants processed 37 million metric tons, or 8.8 million barrels a day, in October, up 12 percent from a year earlier, China Mainland Marketing Research Co., which compiles data for the National Bureau of Statistics, said in a statement from Beijing today. This exceeded June's 8.6 million barrels a day, Bloomberg reported.
Chinese state oil companies are boosting processing in a bid to ease diesel shortages in the southern part of the nation caused by farmers and factories burning more fuel. China Petroleum & Chemical Corp., the nation's largest oil refiner, increased production to a record in October, parent China Petrochemical Corp. said on Nov. 4.
"Refining volumes are set to rise even higher in the last two months of the year as state refineries maximize production," Qiu Xiaofeng, an oil analyst with China Merchants Securities Ltd., said by telephone from Shanghai. "They are trying to ease the domestic shortfall."
Diesel output gained 8.2 percent to a record 13.6 million tons last month, and gasoline rose 6 percent to 6.6 million tons. Kerosene climbed 4.2 percent to 1.43 million tons, according to today's statement.
Natural gas production rose 9.6 percent to 7.88 billion cubic meters in October.
