No More Clean Product Export Quotas from China in 2023: Platts Sources

The Chinese government will not issue new quotas for clean oil product exports or additional crude imports this year according to three Platts sources September 27.

• A rumor had circulated in the market about a fourth batch of clean oil product quotas being allocated to allow refiners to take advantage of strong export margins and the gap left by the indefinite Russian oil product export ban.
• China's average clean oil product exports will be in a downtrend as only about 11.81 million mt (770,000 b/d) of clean oil product export quotas will be available for September through the rest of the year according to Platts.
• China issued 15 million metric tons of oil products export quotas to companies in its third batch for 2023 reported in early September.
• The volume consists of 12 million tons of refined products quotas, made up of kerosene, diesel and gasoline exports, and 3 million tons of marine fuel.
• With regards to additional crude import quotas for this year, the sources said the NDRC indicated that no more extra crude import quotas will be issued this year beyond the annual allocation ceiling for refining quota holders.
• Independent refineries which have used up their crude import quotas for 2023 would have to find alternative feedstocks for the remainder of the year.