China Daily Oil Summary: Chinese October Products Exports Slipped

Chinese gasoline and diesel exports slipped in October, as tightening fuel export quotas are squeezing refiners’ ability to export, pressing margins and refinery runs further into November.

• Chinese gasoline exports fell to 770,000 tons in October, down from 1.09mn tons in September. Chinese diesel exports slipped to 1.1mn tons, down from 1.18mn tons in September. Jet fuel exports rose by 5.5% on the month to 1.53mn tons according to General Administration of Customs data.
• Refined oil production in China is estimated to decline 4.3m tons or 10.8% m-o-m in November while CDU capacity utilization rates are expected to fall 4% to 71.6% according to OilChem. Throughput is expected to fall nearly 6mn tons.
• China began adding to crude inventories in October due to weaker refining and slightly higher imports m/m according to Reuters calculations. It calculated that Chinese inventories rose by around 560kbpd in October. The September calculation showed a draw of 240kbpd.
• Chinese fuel oil imports rebounded in October to 1.81mn tons, up from 1.04mn tons in September, boosted by strong demand from Chinese independent refiners amid tight crude oil import quotas, Customs data showed. The government of Shandong province has asked Beijing for an additional 3mn tons of fuel oil import quotas for the remainder of 2023.
• Crude oil arrivals at China’s independent refineries in the Shandong region stood at 1.19mn tons of crude during 13-19 November, down by 4.74% from the week prior, OilChem data showed.
• POLICY: China will likely relax its "three red lines," easing borrowing restrictions on property developers alongside other stimulus to boost home sales as bond defaults peak following two years of deleveraging, policy advisors and market analysts told MNI.
• YUAN: The PBOC set the dollar-yuan central parity rate lower at 7.1612 on Monday, compared with 7.1728 on Friday.