China Daily Oil Summary: Refiners Await Next Batch of Export Quotas

Chinese refiners will have used up 98% of their fuel export quota by the end of August according to OilChem.

• OilChem said the industry is “anxiously waiting” for the latest batch of export quotas, countering Platts market sources claims they were already out at the start of the week.
• China’s diesel exports are estimated at around 1.1 million to 1.2 million metric tons next month, according to China-based consultancies Longzhong and JLC.
• US Commerce Secretary Gina Raimondo will today conclude a four-day China trip which opened key new lines of communication despite an exchange of rhetoric yesterday after the Secretary suggested that investing in China has become “risky” for US businesses.
• YUAN: The currency closed at 7.2925 against the dollar, flat from the close of Tuesday.
• The yuan may strengthen at the end of the year when the U.S. Federal Reserve is expected to end its rate-hike cycle and domestic company Q4 forex settlements add their support alongside effective implementation of pro-growth policies.
• LIQUIDITY: China’s interbank market liquidity tightened modestly in August but remained ample as the People’s Bank of China (PBOC) ensured funds were available to support the economic recovery. However, traders' outlook on the economy fell to the lowest level since May 2022.