China Daily Oil Summary: Crude Imports to Fall in Oct

China crude imports are forecast to drop to around 10.76mn bpd in October according to LSEG. Domestic demand was forecast to dip after the Golden Week holiday at the start of the month. China crude oil imports were 11.13m b/d in September.

• China traffic congestion has increased post Golden Week while flight miles have pulled back from a short-lived swell for the celebration. Flight miles for the holiday failed to breach peak summer demand.
• Domestic flights in China are set to increase by 38.2% over the next four weeks, according to current schedules, BNEF said. However, it cautioned that many flights are cancelled last-minute in China.
• CDU capacity at China’s independent refineries is likely to peak by 2025, according to OilChem. Industry upgrading, removing outdated capacity, and falling refined oil demand are all factors likely to drive the peak in capacity, OilChem said.
• YUAN: The currency weakened to 7.3137 against the dollar from 7.3115 on Monday. The PBOC set the dollar-yuan central parity rate lower at 7.1796 on Tuesday, compared with 7.1798 set on Monday.
• POLICY: China's belt and road initiative is entering a new phase of high-quality development with a focus on green transition and digitalization, according to Ren Hong Bing Chairman of the China Council For Promotion of International Trade.
• Leaders from the Standing Committee of the National People's Congress will meet from Oct 20-24 to consider authorising the early issuance of new local-government debt, the 21st Century Business Herald reported.