China Daily Oil Summary: No Further Refined Oil Export Quotas in 2023

The Chinese government will not issue new quotas for clean oil product exports or additional crude imports this year according to three Platts sources September 27.

• China's average clean oil product exports will be in a downtrend as only about 11.81m mt (770k b/d) of clean product export quotas will be available for September through the rest of 2023 according to Platts.
• OilChem estimates that daily consumption of gasoline in October will be 3% higher than for September at 481k mt/d. Gasoline production is projected to fall roughly 2% on the month to 0.5m mt/d in October as state-owned refineries plan to marginally reduce capacity utilisation rates. Rates will fall as demand stays flat at present and independent refineries' production remains unchanged.
• Chinese traffic has been rising since the beginning of August and the country’s congestion saw another climb last week by 11.3% week on week in the seven days up to 27 September, the highest level in two years, BNEF data show.
• YUAN: The currency strengthened to 7.3002 against the dollar from 7.3088 on Wednesday. The PBOC set the dollar-yuan central parity rate higher at 7.1798, compared with 7.1717 on Wednesday. The fixing was estimated at 7.3224 by Bloomberg survey today.
• EXCLUSIVE: The resumption of regular economic China-U.S. dialogue via the creation of working groups shows both countries want to avoid a costly decoupling, but any substantial breakthrough – such as tariff reduction – remains a distant prospect, policy advisors and market analysts told MNI.
• Policymakers will correct unilateral and procyclical behaviour to keep the yuan stable and avoid overshooting, according to the People’s Bank of China.