China Daily Oil Summary: Teapots Expect Fuel Import Quota Boost

China's small independent refineries expect the government to raise the fuel oil import quota for 2023 by 3mn tons for non-state-owned companies to allow them to bring in more barrels as an alternative feedstock for the remainder of the year, sources told S&P Global Commodity Insights.

• The annual limit was set at 16.2mn tons at the beginning of the year. This has been kept stable for several years as the fuel oil quotas were more than sufficient either due to slow refining demand or abundant crude oil imports.
• Crude arrivals into Shandong Independent refineries were at 1.24m mt in the week to Nov. 12m down 33.51% on the week, according to OilChem.
• POLICY: China’s private sector registered 7.1 million new firms during the first three quarters of the year, up 15.3%, according to a press release from the State Administration of Market Regulation. The private sector now exceeds 52 million enterprises and accounts for 92.3% of the country's total, the administration added.
• YUAN: The currency weakened to 7.2933 against the dollar from 7.2928 on Monday.
• FROM THE PRESS: China’s banking risks remain controllable with key indicators at a reasonable range, according to the PBOC. A recent PBOC report found 4,000 commercial banks were low risk, with 300 classified as high risk which accounted for less than 2% of all banking assets.