China Daily Oil Summary: China Looks to North Sea Crudes

China has purchased up to 4m bbl of North Sea Forties grade crude for export in October, according to Bloomberg, as it seeks to replace supply cuts from Saudi Arabia and Russia.

• This would mark the largest flow of forties into China since June and would represent around 70% of the grades’ exports in October.
• China's independent refineries may be required to source alternative feedstocks amid growing expectations that the country may not issue additional crude import quotas towards the end of the year, which could boost import demand for fuel oil, bitumen blend and other heavy oils, sources told S&P Commodity Insights.
• Crude import quotas issued so far in 2023 by Beijing for 29 quota holders stood at 165.21mn tons.
• Crude oil imports into independent refineries in China’s Shandong region fell by 34% on the week, according to OilChem.
• FROM THE PRESS: The People’s Bank of China Governor Pan Gongsheng vowed to provide more substantial support to the economy amid recent improvements in economic indicators.
• China’s GDP likely grew 4.8% y/y in Q3 with high-frequency indicators in September showing a quicker pace of recovery, according to Wen Bin, chief economist at Minsheng Bank.
• YUAN: The currency weakened to 7.3115 against the dollar from previous close of 7.3040.
• Russian President Putin will meet Xi Jinping in China this week to deepen partnerships between the two nations with energy also set for discussions.