Industry insiders predict that the Chinese oil market is unlikely to see a diesel shortage in the fourth quarter this year, usually a peak period for diesel consumption, reported China Securities Journal on Thursday.

Compared to previous years, demand for diesel might slide in the fourth quarter, an analyst in ICIS told the Journal.

Due to China’s weak economy and sufficient supply, oil prices have declined recently. China reduced the retail price of diesel oil by 95 yuan ($15.5) per ton on Sept 29; the fifth consecutive drop since July.

However, the continuous price decline has not boosted the oil market. In the first three quarters this year, Chinese diesel market appeared to be sluggish.

With sufficient diesel supply, China will continue to export diesel oil and the net export amount of diesel oil this year is estimated at more than 4 million tons, said Yang Dan, an analyst in ICIS.

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