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China Allows 2024 Crude Import Quotas Use in Dec

OIL

China is allowing crude oil import quotas for 2024 to be used by independent refineries in December according to S&P Global.

  • Few refiners are interested to apply for the advance despite the tight availability in 2023 suggesting it is too late to boost imports in Dec according to sources. Five out of six quota holders said they will not be applying, and one did not comment.
  • Any volume of 2024 quotas that are applied for utilizing in 2023 will be deducted from their 2024 allowance. Advanced quotas must be used by end-2023 and unused volumes cannot be rolled in 2024.
  • Applications must be submitted on Dec 11 but it is unclear when they will be granted.
  • "The move reflected that the government has realized our needs, but the permission comes too late. It is already mid-December and we have finalized our throughput and import plan in December amid tight 2023 import quota availability," a Shandong-based independent refiner said.
  • The limit for crude oil import quotas is unchanged from recent years at 243m mt for 2024.

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