Bloomberg reported that China’s crude oil demand growth may continue to slow in the third quarter as a cooling economy cuts requirements for fuel including diesel.

China National Petroleum Corp’s research unit said crude consumption may average 37 million tonnes a month or about 8.9 million barrels a day up by 9.5%YoY. That compares with the 15%t gain in the second quarter and the 22% increase in the first.

CNPC said in a statement the economy is cooling as the government trims credit growth, presses for energy efficiency gains and discourages multiple-home purchases. Diesel sales at China two biggest oil companies including China Petrochemical Corp dropped noticeably last month from June.

CNPC and China Petrochemical known as Sinopec Group aren’t planning to import diesel in August.

CNPC said Heavy rains, floods and an annual fishing ban from June to August for conservation reasons have also curbed diesel use. Privately held refineries may keep operating rates at about 33% in August because of weak sales.

It said growth in China diesel consumption in the third quarter may slow to 5.5% with monthly demand averaging 13.2 million tons.

(Sourced from Bloomberg)