As we discussed in Commodore Research's most recent Weekly China Report, September saw a total of 2.58 million vehicles sold in China (and also a record 652,000 vehicles exported). Of the 2.58 million vehicles, 1.19 million were gas engine vehicles, which marked a year-on-year increase of 9%. Gas-engine vehicle sales have now grown on a year-on-year basis for four straight months. Previously, they had contracted on a year-on-year basis in fifteen of the prior sixteen months.
China’s crude oil imports most recently totaled 47.3 million tons in September, which was down month-on-month by 2.2 million tons (-4%) but up year-on-year by 1.8 million tons (4%). Significant is that China's crude oil imports have now grown on a year-on-year basis during six of the last seven months. Previously, they had contracted on a year-on-year basis in nine of the prior ten month. The newfound growth in gas engine vehicle sales in China remains a tailwind for China's crude oil demand.
