China Q4 quota awards show total 2017 oil products exports to be cut 19 pct
China has allocated 1.644 million tonnes of oil product export quotas for the fourth quarter to two state-owned oil majors, China National Petroleum Corp and Sinopec, a document reviewed by Reuters showed.
The quota awards, shown in a Ministry of Commerce document, mean China’s total oil product exports for 2017 will fall to about 37.4 million tonnes, some 19 percent lower than last year. The volume was well below industry expectations, and Beijing had also excluded other refiners CNOOC and Sinochem Corp in this round of quotas. For October-December, CNPC was granted a total of 800,000 tonnes in oil export quotas, including 110,000 tonnes of gasoline, 400,000 tonnes of jet fuel and 290,000 tonnes of diesel, the document showed.
Meanwhile Sinopec , Asia’s largest refiner, will be allowed to export 844,000 tonnes of fuel – 20,000 tonnes of gasoline, 735,000 tonnes of kerosene and 89,000 tonnes of diesel.
Beijing has scaled back fuel export quotas this year as part of a drive to cut pollution. A record volume of quotas issued last year also wasn’t fully utilised, trade sources said.
Still, the cuts could cap crude processing rates in China as its refiners grapple with a fuel supply glut, unable to export excess supplies.
Source: Reuters (Reporting by Chen Aizhu and Meng Meng in BEIJING; Additional reporting by Jessica Jaganathan in SINGAPORE; Writing by Florence Tan; Editing by Kenneth Maxwell)