Official data released on Thursday revealed that oil refinery output in China fell by 6.1% year-on-year in July, marking the fourth consecutive month of decline. The drop is attributed to weak refining profits and sluggish fuel demand.

According to the National Bureau of Statistics, refineries processed 59.06 million tons of crude oil in July, translating to 13.91 million barrels per day, the lowest level since October 2022.

July’s output decreased from 14.19 million barrels per day in June to 14.87 million barrels per day in July 2023. The data also indicated that production in the first seven months of the year totaled 419.15 million tons, or 14.37 million barrels per day, a 1.2% decline compared to the same period last year.

Despite a rebound in travel during the summer school holidays in July and August, gasoline demand remained weak, as consumers preferred to travel abroad or use high-speed rail for long journeys instead of driving.

Additionally, the continued rise in electric vehicle adoption in the world’s largest auto market has further contributed to the decline in gasoline consumption.