China Weekly Oil Summary: Sinochem Buys Venezuelan Crude

China's Sinochem Corp has agreed to buy a million barrels of heavy Venezuelan Merey crude at a discount of 11$/bbl to dated Brent crude on a DES basis for arrival in December according to Reuters sources.

• The rare purchase from the state-owned company comes after the easing of sanctions on Venezuela's oil and gas exports for six months.
• China cut its gasoline price by 415 y/t and its diesel price by 400 y/t.
• Chinese diesel exports last month fell by 44.9% on the year to 1.16mn tons, but up from 1.11mn tons in October, data from the General Administration of Customs showed, cited by Reuters.
• Looking at airline passenger capacity, domestic capacity - which constitutes 92.7% of all seats to, from, and within China – is 11% ahead of 2019 levels, according to OAG. International capacity is just 62% of Dec. 2019 levels.
• YUAN: The currency strengthened to 7.1393 against the dollar from 7.1450 on Thursday.
• EXCLUSIVE: Beijing and Shanghai’s latest round of house-market relaxations may help boost volumes and revive the ailing property sector over the next few months, but price weakness will likely persist as over-leveraged developers offer discounts to boost sales, policy advisors told MNI.
• FROM THE PRESS: China will reduce import tariffs for 1,010 commodities below most-favoured nation tax rates starting from Jan 1, 2024, according to a statement from the State Council Tariff Commission. Overall, policymakers aim to improve linking domestic and international markets and ensure the seamless operation of the nation's supply chains. (Source: 21st Century Business Herald).