China major fuel stocks down 5 pct in Oct-source

BEIJING, Nov 16 (Reuters) - Combined stocks of gasoline, diesel and kerosene held by China's top two oil companies dropped by 5.0 percent in October from September, while domestic sales rose 2.6 percent, an industry official with knowledge of the data told Reuters on Monday.

The drop in refined fuel inventories, the third straight month of declines after three months of consecutive stock builds, came as more signs are seen of a more solid recovery in China's economy.

"It is true that the economic recovery is gathering momentum, that's evident from the sizeable drop in diesel stocks," the source said.

Gasoline stocks rose 1.6 percent while diesel dropped 10.1 percent, the source said, without giving specific levels.

Sales of the two fuels increased during the month. Gasoline sales rose 3.7 percent in October to about 5.8 million tonnes, while diesel sales rose 2.2 percent to 12.4 million tonnes, the source said.

The source declined to be named as he was not authorised to speak to the media.

(Reporting by Eadie Chen and Chen Aizhu, editing by Tom Miles)

(eadie.chen@reuters.com; +8610 6627 1268; Reuters Messaging: eadie.chen.reuters.com@reuters.net))