China Daily Oil Summary: Export Quotas Scarce as 2023 Draws to Close

China’s Sinopec asked the government for an additional 0.8m mt of export quota for refined products as a surplus of oil products in the domestic market boosts stockpiles at Chinese refineries, according to Bloomberg.

• OilChem said that China’s planned exports of refined products, including gasoline, gasoil, and kerosene, are scheduled at 2.62m mt in December, down 4% on November levels amid limited export remaining export quotas.
• Meanwhile, China’s Yulong Petrochemical has received 0.3m mt of crude oil import quotas for 2023 to secure feedstocks to trial run a new refinery in the Shandong province, according to JLC and Longzhong.
• Asian refiners have purchased fewer cargoes of CPC blend in December, with Chinese refineries securing only 1-2, according to Bloomberg. Demand is weak due to cheaper alternatives and falling refinery margins.
• POLICY: The People’s Bank of China (PBOC) will keep monetary policy accommodative to support the economy, as focus shifts to improving economic structure and forming new growth drivers, said PBOC Governor Pan Gongsheng in a keynote speech.
• China’s economy has a solid foundation to achieve its end of year economic goals following Q3 GDP growth of 4.9%, according to the People’s Bank of China’s Q3 annual report.
• YUAN: The currency weakened to 7.1519 against the dollar from 7.1485 on Monday.