Singapore:China has released its first refined fuel export quotas for 2024, amounting to 19 million metric tons. This volume remains unchanged from the previous year and aligns with market expectations, as reported by Chinese consultancies JLC and Longzhong on Friday.
China manages its refined oil exports through a strict quota system, strategically employing exports to balance and ensure adequate domestic market supply. State oil giants Sinopec and CNPC, the primary recipients of the quotas covering diesel, gasoline, and aviation fuel, were collectively granted 13.22 million tons, nearly 70% of the total, according to both consultancies.
Zhejiang Petrochemical Corp stands out as the sole private refiner allocated a refined fuel export quota totaling 1.73 million tons.
In addition to the refined fuel quotas, China also released the first tranche of low-sulfur fuel oil (LSFO) quotas, amounting to 8 million tons, consistent with the previous year's level. Approximately 90% of these quotas were allocated to Sinopec and CNPC, according to traders with knowledge of the matter, speaking on condition of anonymity.
Chinese domestic demand for gasoline is projected to peak in 2024, according to international agencies. Sinopec previously suggested that domestic gasoline demand may have peaked in 2023 following increased market penetration of electric vehicles. Similarly, domestic demand for diesel faces weak growth prospects due to challenges in the country's property market and construction sector.
Despite this, Chinese gasoline and diesel exports were constrained in late 2023 due to a lack of available quotas. The China Commerce Ministry did not immediately respond to a faxed request for comment.
In the first 11 months of this year, China exported nearly 39 million tonnes of refined fuel, including 14.3 million tons of jet fuel (up 56% YoY) and 13.1 million tons of diesel (up 61% YoY). __Reuters.
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