China Daily Oil Summary: Onshore Crude Inventories Fall

Chinese onshore crude inventories have been drawing lower since late July according to Vortexa figures.

• Higher volumes have come out of onshore stocks as prices on global markets have risen while helping to sustain a strong refining backdrop.
• China is set to cut retail fuel prices from Oct. 11, according to NDRC. Gasoline prices will fall by 85 y/t, while diesel will fall by 80 y/t.
• China cross-border travel may take another year to fully recover according to World Travel & Tourism Council Chief Executive Office Julia Simpson. China traffic with US/Canada was running about one tenth of pre-pandemic in September according to OAG.
• The number of weekly round-trip flights between China/US is set to rise to 24 for each nation by the end of October. Before Covid, the weekly flights between them averaged ~340.
• YUAN: The currency weakened to 7.2930 against the dollar from 7.2922 on Monday. The PBOC set the dollar-yuan central parity rate lower at 7.1781, compared with 7.1789 set on Monday.
• CHINA WEIGHS NEW STIMULUS, HIGHER DEFICIT TO MEET GROWTH TARGET – BBG
• FROM THE PRESS: New yuan loans are expected to continue to pick up in September as pro-growth policies kick in, while coupled with the increase in government bond issuance, total social financing is also likely to achieve y/y growth. New loans are estimated to rise further to CNY2.6 trillion.