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China may increase fuel export quotas

OIL PRODUCTS

China may allocate additional fuel export quotas of 3.5m tons to oil refiners due to weak domestic demand and rising stockpiles, according to JLC.

  • Quotas would be for gasoline, diesel, and jet fuel, increasing quotas for the year to 16.5m tons. This is still less than 29.5m tons allocated in the first batch in 2021 as China gradually limits overseas sales.
  • Exports of refined oil products account for a small proportion of output with just 11% in 2021 and 14% in 2020.
  • Chinese refined product exports are primarily used to balance short to medium term downstream supply and demand.

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