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Delays in Chinese Fuel Export Quota's Driving Margins: FGE

OIL PRODUCTS

Delays in China announcing its third batch of fuel export quotas has boosted gasoline margins and time spreads according to FGE.

  • 8-10 million tons of transport fuel quotas may be issued in two batches FGE said in a client note.
  • First batch is expected at the end of August.
  • Chinese refiners should ramp up gasoil shipments once the quotas are issued, pressuring margins of the fuel in Asia in the coming months according to FGE.
  • With Chinese domestic gasoline stocks tight, the government is concerned export quotas may exacerbate the situation.

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