China's Oil Products Exports Expected to Rise in Jan

Oil products exports from China are expected to rebound in January boosted by the first batch of export quotas and jet fuel sales for peak Lunar New Year travel according to Reuters sources.

• January refined fuel exports could increase at least 10% from an estimated 3.1m tons last month to 3.5m - 3.6m metric tons, with diesel more than double on the month. An increase in China and Middle East exports will add to global diesel supply this year and cap prices.
• Expanded commercial diesel inventories during the low transport and industrial sectors demand season has also boosted exports.
• Diesel exports are estimated up from 450k tons last month to 975k tons based on an average from FGE, Longzhong and Wood Mackenzie.
• Jet fuel exports could reach the highest in more than a year at 1.63m tons based on the median of estimates from Longzhong and Wood Mackenzie compared with 1.5m tons estimated for December.
• Gasoline exports are likely to remain flat at 800k to 1m tons this month amid negative refining margins.