Contrary to some observers who focus intently on trade data as a proxy for demand, China’s total oil product demand rose by only 150 000 bpd in 2018. This is part of the reason why the global oil market is so weak as the year comes to an end. China’s oil demand will surprise again in 2019, but this time by rising by over 400 000 bpd, according to ESAI Energy’s latest China Watch. This rebound is comprised mainly of non-marketed naphtha at two new petrochemical integrated refineries, as well as LPG demand from a wave of PDH investment.
