China Dips into Crude Inventory as Refinery Runs Rise

China's crude oil inventory levels have been dwindling at an alarming rate as the country taps into its massive stockpile to meet rising refinery demand. According to official data, China processed a record 13.91 million barrels per day (bpd) in August, exceeding available crude by 640,000 bpd.

This is the third time in four months that China has drawn on its inventories to supplement imports and domestic production, which totaled 8.93 million bpd and 4.34 million bpd respectively in August.

The drawdowns have been significant, with an estimated 500,000 bpd tapped in May and 940,000 bpd in June. However, the recent rise in refinery runs has put pressure on inventories, leading to a draw of about 500,000 bpd in August.