China Daily Oil Summary: OPEC Raises China Demand Forecast

OPEC has also lifted its forecast for Chinese oil demand – likely one of the supportive factors for crude prices after the release of the report despite most of the other key forecasts remaining largely unchanged.

• Chinese oil demand growth for 2023 has been upgraded by 50,000 bpd to 970,000 bpd, driven by a 190,000 bpd revision to third-quarter demand.
• China's qualified refineries are eager to receive the remaining crude import quotas for 2023 to aid their crude procurement plans, according to Platts.
• Market sources estimated up to a combined 37.8m mt of quotas will be released, comprising 10.45m mt of the remaining quotas for 15 refineries and an extra 27.36m mt to 18 refineries which have been allocated 100% of their annual quotas, according to Platts.
• YUAN: The currency strengthened to 7.2835 against the dollar from 7.2906 on Monday.
• FROM THE PRESS: The People’s Bank of China will likely introduce new and forceful measures to shore up the yuan after it flagged a desire to take action when necessary on Monday, 21st Century Business Herald reported Tuesday citing traders.
• INTERVIEW: The Chinese government needs to adopt more aggressive expansionary macroeconomic policies, including more fiscal spending and rate cuts, to bolster demand as factory orders shrink rapidly, while authorities should implement recently announced supply-side policies as soon as possible, a former member of the People's Bank of China's Monetary Policy Committee told MNI.