In August, China's commercial crude oil and refined products inventories, adjusted seasonally and for demand growth, turned sharply negative.
Crude oil excess inventories, which stood as high as 20 mb in March, fell to -19 mb in August. Gasoline inventories, which were 7 mb below normal in January, were 19 mb below normal in August. Diesel, relegated to the status of an undesired by-product of the refining process, saw excess inventories peak at 20 mb in July, and fall to 12 mb in August (partly due to hefty exports). Overall crude and product inventories came in 27 mb below seasonal, demand-adjusted averages.
Anyone looking for excess commercial oil inventories will not find them in China.