China’s April Oil Throughput Hits Lowest Since August 2022, Inventories Rise
China’s crude oil refining activity fell sharply in April 2026, reaching its lowest level since August 2022 as weak refining margins, supply disruptions, and softer fuel demand continued pressuring the energy sector. Rising inventories and reduced refinery utilization are adding further uncertainty to the global petroleum market outlook.
Key Market Figures
- Crude throughput: China’s refinery processing volume declined approximately 5.8% year-on-year.
- Daily refining rate: Throughput averaged around 13.3 million barrels per day (bpd).
- Refinery utilization: Operating rates dropped to approximately 63.6% across several facilities.
- Oil imports: Crude imports fell nearly 20% compared to the previous year.
- Inventory build: Onshore crude inventories increased by approximately 17 million barrels.
Factors Behind the Decline
- Weak refining margins: High crude costs reducing profitability for refiners.
- Supply disruptions: Global shipping and supply chain instability affecting crude flows.
- Lower fuel demand: Softer industrial and transportation fuel consumption slowing refinery activity.
- Market uncertainty: Volatile global oil prices impacting refinery purchasing decisions.
Industry Impact
- Refinery pressure: Independent refiners expected to continue reducing operating rates.
- Inventory growth: Rising stockpiles increasing storage pressure across regional markets.
- Asian fuel market: Lower refining activity contributing to uncertainty in fuel supply and pricing.
- Global demand concerns: Slower Chinese refinery activity influencing broader oil demand expectations.
Market Outlook
- Margin recovery: Refiners monitoring crude price movements closely for signs of improved profitability.
- Demand trends: Future refinery activity will depend heavily on industrial recovery and fuel consumption growth.
- Supply conditions: Ongoing geopolitical tensions and logistics disruptions remain major risks to market stability.
Outlook
China’s refining sector is expected to remain cautious through the coming months as weak margins and elevated inventories continue pressuring operations. Analysts believe refinery throughput could recover later in 2026 if crude prices stabilize and fuel demand improves across the region.
