Chinese Oil Demand Falls For First Time in Three Years

According to an analysis from Platts, Chinese oil demand fell for the first time in three years in June. Examining recently released Chinese government data, the analysis showed that demand fell by 1.9 percent year over year to 36.84 million metric tons. It was the first contraction in since a 2 percent fall in the first-quarter of 2009. In aggregate, oil demand was at its lowest since September of last year according to the data.

"Industry sources we've spoken to have been expecting this drop to come sooner or later," said Song Yen Ling, Platts senior writer for China. "You can't keep watching the engines go slower and slower and not expect to see a drop in the fuel that's needed."