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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL PRODUCTS
China's gasoline, diesel and jet fuel exports may rise next month to 4.02mn tons as state-owned refiners capitalize on good margins and some western demand, while international flights recover, industry sources and analysts said.
- This would be up from 2.38mn tons in September, according to Kpler data, while LSEG data puts September exports at 3.385mn tons. Both data exclude jet fuel exports.
- Jet fuel exports may rise to 1.63mn tons, according to the median of estimates from consultancies Longzhong, JLC and FGE. That would be up from an estimate of 1.6mn tons for September that includes the fuel loaded onto outbound flights.
- Chinese refiners stand to reap $10/bbl profit from diesel exports, one China-based trader said.
- "While strong Asian margins are still encouraging refiners to export their cargoes, volumes going forward may still be limited by the quota availability,” Xu Peng, analyst at JLC said.
- The boost in Chinese exports follows Beijing issuing a third batch of fuel export quotas earlier this month. China is importing lower-priced sanctioned oil from Russia, Iran and Venezuela and maximising output to ramp up exports.
- Exports will rise along with international flight capacity which could reach around 55% of 2019 levels during the October holiday season, FGE analysts said in a note.
- September's international flight capacities are now 54% of the levels in the same month of 2019, up from 52% in August, aviation data analytics firm OAG said.
- Refinery outages in the US and Europe have also tightened supplies and encouraged Chinese exports, two Singapore-based traders said.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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