UPDATE 1-Shortages squeeze Nov growth in China oil demand

By Emma Graham-Harrison

BEIJING, Dec 24 (Reuters) - China's apparent oil consumption crept up just 1.0 percent in November from a year earlier, hit by fuel shortages that persisted through the month in spite of a string of government moves to smooth supplies.

China's refiners retreated from the market in the autumn because low state-set prices, combined with global crude markets climbing toward $100 per barrel, were causing massive losses.

Faced with the worst fuel crisis in four years, Beijing raised prices at the start of November to tempt its plants to increase runs and issued a set of directives to remind oil majors of their "social duty".

The shortages eased, but only slightly, nudging apparent consumption up about 2 percent from October levels to 6.96 million barrels per day (bpd), but leaving it just 1 percent above a year ago, Reuters calculations from official data showed.

Net imports of oil products were also the lowest since May 2005, despite the highest diesel imports for three years, as oil firms also shunned loss-making purchases abroad.

For the year through November, implied demand -- net imports plus refinery output, but excluding inventory changes which are not reported -- rose a slightly more robust 3.3 percent to 6.91 million barrels per day, the figures showed.

(For details of demand growth click [ID:nBJI000014])

The 10 percent increase in fuel prices, effective Nov. 1, was not enough to bring refiners back into profit.