* June implied demand 9.94 mln bpd, highest since Feb
* First-half demand 9.82 mln bpd, up 3.4 pct on yr
* H1 net fuel imports fall 17.5 pct on yr as exports rise
* June refinery runs hit four-mth high at 9.64 mln bpd
(Adds quotes and milestones, wraps in demand)
By Chen Aizhu and Judy Hua
BEIJING, July 15 China's implied oil demand
rebounded in June to the highest in four months as refineries
returned from maintenance, but the recovery looks short of
momentum amid prospects of slower economic growth through the
rest of the year.
Despite implied demand being up 10 percent from a year ago
and nearly 5 percent from May, analysts are expecting growth in
oil use to remain roughly flat to last year.
The June numbers were strong because of a low comparative
base and the heavy destocking China did last year, said Barclays
analyst Sijin Chen, who pegged the country's growth in oil
demand at around 5 percent for 2013.
"The growth numbers are probably an exaggeration. The
implied oil demand is not as much as the numbers are making it
out to be," Chen said.
The world's second-largest fuel user consumed 9.94 million
barrels per day (bpd) of oil last month, according to Reuters
calculations based on government data released on Monday.
The rebound was mostly attributed to refinery runs that
accelerated to a four-month high of 9.64 million bpd as plants
returned from April-May maintenance. The high processing rates
also suggested a drawdown in inventories as crude imports fell
China's crude stocks rose in each of the three months to
June, with commercial inventories up 4.75 percent at the end of
May from the month earlier.
For the first half of the year, implied oil demand was up
3.4 percent versus the same period a year ago at 9.82 million
bpd, according to Reuters calculations. That was lower than last
year's growth of about 4.5 percent, the slowest in four years.
China's annual GDP growth slowed in the second quarter to
7.5 percent, and Chinese officials have warned recently that the
slower trend is likely to continue. That means China may not be
the robust driver of global oil markets it has been over the
Implied oil demand is estimated by adding crude throughput
and net imports of refined products, but excluding changes in
inventories which China rarely discloses.
Weaker growth and the lack of new stimulus from Beijing
weighs mostly on demand for diesel fuel - a bellwether for
manufacturing activity - as well as on feedstock fuels, such as
naphtha, for petrochemicals, analysts say.
"Diesel has performed poorly, dipping in real consumption by
0.5 percent in the first half according to our estimates," said
Dai Jiaquan, an analyst at the Research Institute of Economics
and Technology, a research arm of state energy group CNPC.
Gasoline, however, recorded a robust 12 percent expansion in
real demand thanks to healthy car sales, said
China's net fuel imports fell by 17.5 percent in the
January-June period on the year, as companies aggressively
raised exports of diesel, gasoline and naphtha in the first five
months to cash in on better export margins and to trim high
(Reporting by Chen Aizhu and Judy Hua; Editing by Muralikumar
Anantharaman and Tom Hogue)