Global fuel demand is expected to reach pre-pandemic levels by early next year as the economy recovers from the ravages of the pandemic, but excess refining capacity is likely to weigh on the outlook

U.S. crude oil stockpiles last week fell more sharply than expected as refining output rose and exports surged, the Energy Information Administration said

China’s commercial oil stockpiling sector, which emerged as a key swing buyer of crude as prices plunged earlier this year, is setting plans to grow again in 2021, supporting a further boost in imports

China’s crude oil throughput rose 2.6% in October from a year earlier to hit a record high as fuel demand firmed on strong holiday travel

The move will provide partial relief to widespread fuel shortages in the once-prosperous OPEC nation, whose 1.3 million- bpd refining network is mostly halted because of years of underinvestment and lack of maintenance

The drop in oil demand by refiners at local level and the exports limited to a minimum at global level due to the coronavirus pandemic, pushed storage capacity to the limit in the producing provinces