China Oil Demand:August 2016,Slow demand points to slow economy

Demand outlook: Our Chinese oil demand expectations remain at 0.3-0.4x GDPgrowth, or c.2-3% y-o-y growth, based on HSBC’s China GDP forecast. But we thinkultimately the crude and refined products supplied to the market must be balancedwith demand. The current momentum for crude imports is driven by inventory buildsat teapots and SPR. We believe inventory is likely to increase after a sharpwithdrawal in August. Rising oil products exports should remain strong givensaturated domestic demand and expected flattish refinery runs.