China's Fuel Imports Surge in September

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China's Thirst for Diesel, Kerosene Stays Strong [Wall Street Journal]

Summary: China's diesel imports soared 99% y-o-y in September to 47,280 metric tons, and kerosene imports jumped 80% to 580,717 tons. Some of the increase is attributed to a weeklong national holiday at the beginning of October, higher demand amid the fishing season and for crop harvesting. Data was not provided for China's shipments of these fuels to North Korea, but separate customs data for September is disturbing as it shows gasoline and jet fuel shipments more than tripled. China's imports of diesel and kerosene meanwhile, could be sustained at a high growth level due to lower import duties to be implemented in November, at 0%-3%, from a prior rate of 3%-6%. A Deutsche Bank analyst says demand for fuel oil could rise, and smaller refineries stand to benefit against major refineries such as PetroChina Co. and China Petroleum & Chemical Corp.
Related links: Oil Inventories On the Rise: Where's the Shortage? • Asian Energy Fundamentals • CNOOC: Chinese Energy Stock Worth a Close Look • Oil Traders Testing the OPEC Cartel • China's Potential Collaboration with U.S. in Oil Field Development
Potentially impacted stocks and ETFs: PetroChina (PTR), China Petroleum & Chemical (SNP) • BLDRS Emerging Markets 50 ADR Index ETF (ADRE), PowerShares Golden Dragon Halter USX China ETF (PGJ)

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