China Weekly Oil Summary: Crude Import Quotas Released

Chinese oil import quotas have been released at 179.01mn metric tons for 2024, 60% higher than the batch released in Jan 2023.

• The quotas were issued to 41 companies – mostly independent refiners. The majority of refiners got their whole year’s volume in the latest issuance according to JLC.
• China has also issued the first batch of 2024 oil product export quotas at 19mn metric tons – flat y/y and in line with market expectations according to JLC.
• Chinese refiners are planning to export 4.08m tons of oil products in January according to OilChem – up 70% vs December when quotas were thinning. It has risen form an earlier estimate of 3.7mn tons.
• China’s Shandong-based Yulong Refinery is expected to start stable and on-spec production in 1H 2025 according to FGE. Construction of the project is still ongoing, and no major units have been completed or undergone testing.
• YUAN: The currency weakened to 7.1566 against the dollar from 7.1520 on Thursday.
• DATA: China's Caixin manufacturing PMI rose slightly by 0.1 points to register 50.8 in December from November, staying in the expansionary zone above the breakeven 50 mark for the second consecutive month and hitting a four-month high, the financial publisher said.
• FROM THE PRESS: Final consumption and net export will contribute less to GDP growth in 2024 than 2023, and will require double-digit growth in infrastructure investment to help achieve a 5% GDP, said Yu Yongding, an academic at the Chinese Academy of Social Sciences.